Songbird Lifts Stake in Canary Wharf, Backed by Qatar (Update1)

Songbird Estates Plc, which controls more than half the buildings in London’s Canary Wharf financial district, will increase its stake in the area with the backing of shareholders.

Songbird will enlarge its share of Canary Wharf Group Plc to 69 percent by buying an 8.5 percent holding from Commerzbank AG for 112.5 million pounds ($183 million), the London-based company said in a statement today.

The company said it will finance the purchase by boosting the amount of cash it’s raising to repay an 880 million-pound loan from Citigroup Inc. by 70 million pounds. Songbird will now sell 620 million pounds of new equity and 275 million pounds of preference stock. It previously planned to issue 550 million pounds of equity.

Qatar Holding LLC, which intends to become Songbird’s largest shareholder; China Investment Corp.; and New York investor Simon Glick have all agreed to buy more Songbird stock in the new offering, the statement said. They will also provide loans to fund the balance of the purchase of Commerzbank’s stake, along with Morgan Stanley.

Tim Roberts, a member of Songbird’s board of directors who was nominated to the post by Songbird investor British Land Co., resigned from the board today, Songbird said in a separate statement. British Land isn’t taking up its full entitlement in the rights offering.

The shares were unchanged at 32.5 pence in London trading.END