The Help Tabloid

Getting control of Canary Wharf, London’s second largest commercial estate, did not come easy for Songbird Estates. According to estimates, the company was almost on the verge of losing everything, but it was saved by the flow of new capital. As the situation stands currently, Songbird is all set to repay CitiGroup its loan of £880 million by the end of this month.

A major role in the payback scheme is to be played by Qatar Holding, the Qatar-based firm, and Fullbloom Investment Corporation, a part of China Investment Corporation, that have made investment to the tune of £275 million in preference shares of the company.

The participation of the Chinese sovereign, in its largest investment in the UK, as well as Qatar as one of the major shareholders in the venture, has encouraged others to come forth and make investments in Songbird Estates. Songbird is also expected to draw more investors by publicising the fact that it is planning to increase its stake in the desk space London development by purchasing shares from Commerzbank.

The company is also expected to benefit from the participation of major players like Morgan Stanley, that owns around 12% shares in the group, Prince Alwaleed bin Tahal of Saudi Arabia, British Land as well as the co-founder of software giant SAP, Hasso Plattner.

Any worries that the investors may have would further wear away with the six-monthly reports showing that almost 97% of Canary Wharf is committed to office rental leases. Though there were some initial hitches, the signs are encouraging and all members of the group are positive about the developments.