Wednesday 25 October 2023

Brookfield and #Qatar Invest £400 Million in Canary Wharf Group - Bloomberg

Brookfield and Qatar Invest £400 Million in Canary Wharf Group - Bloomberg

Canary Wharf Group, the developer of London’s dockland financial district, has received a fresh equity injection from its shareholders, as the area contends with high profile departures and a shift to working from home.

Brookfield and the Qatar Investment Authority have committed to a £300 million ($364 million) equity injection for the firm as well as a £100 million revolving credit facility, according to a press release from the firm on Wednesday.

Canary Wharf Group has a £350 million bond due in 2025, which has been trading at a discount since last year. The bond was changing hands for 89.1 pence on the pound at 1:43pm London time, after rising as much as 5.3 pence following the announcement.

“The proceeds will be used to complete the strategic repositioning of Canary Wharf and build out additional residential and life sciences projects on the estate,” the release said.

Canary Wharf has struggled since the pandemic led to a shift to flexible working, bringing in fewer workers to populate the desks of the large office blocks that dominate its skyline. HSBC, Europe’s largest bank, said it would quit its skyscraper in the district for a new location in central London, following a similar move by law firm Clifford Chance. For decades dominated by financial services firms, the area is intent on drawing in more residential and life-sciences tenants.

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