Songbird subsidiary acquires partnership

published 18 January 2012

Songbird Estates' subsidiary Canary Wharf Group (CWG) has acquired the Wood Wharf Limited Partnership from its original joint venture partners.

Under the agreement, CWG now owns the partnership's associated companies and an overriding 250-year lease for the 16.8 acre Wood Wharf site immediately adjacent to the Canary Wharf business and shopping district.

Songbird said: "The transaction reflects Canary Wharf Group's commitment to developing a more diverse portfolio, both in terms of its asset and tenant base, and its confidence about the future of London as a pre-eminent global centre."

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CWG has combined its own 25% with the 75% previously owned by its original joint venture partners British Waterways and Ballymore Properties.

It also agreed the restructuring of British Waterway's on-going participation as freeholder of the Wood Wharf site. As a result, Canary Wharf Group has control over the timing and design of the scheme.

The consideration paid for the acquisition of British Waterways' 50% interest in Wood Wharf was £52.4m, together with the restructured 250-year lease that will see an annual ground rental payment to British Waterways increase to £6m by 2016.

The £52.4m payment comprises an upfront payment of £4.4m and a series of four annual payments up to and including 2015.

The total paid for the acquisition of Ballymore's 25% effective interest in Wood Wharf was £38m. These transactions were fully funded by Canary Wharf Group's cash resources.

Songbird's share price rose 3.15% to 114.5p by 09:53.