Interest in established real estate seems to be reviving, as revealed by the increase in the Canary Wharf stake announced by Qatar. Sources from Qatar Holding affirmed the group’s interest in lucrative investment opportunities in proven real estate markets.
Qatar Investment Authority invests in promising real estate ventures though its Qatar Holding division. Existing investments from the group include those in well-known and established groups like the London Stock Exchange, J Sainsbury PLC, Credit Suisse Group and Barclays Plc.
Qatar Holding has revealed that it has now acquired majority shareholder status in Songbird Estates, which owns about 60 % of the buildings in the Canary Wharf financial district. The announcement regarding this was made on recently by the sovereign wealth fund of Qatar. In all, Qatar now owns nearly a quarter of the shares in Songbird PLC, translating into 350 million pounds in cash terms.
A significant sum, though unspecified, has also been routed to boost Songbird’s finances to facilitate further office space acquisitions. The financial contribution is expected to let Qatar hike its stake in the company if it desires to do so in future. This will also encompass any property the company may have stake in. Qatar already holds three positions on the board of Songbird and one on the Canary Wharf group.
Speaking about the announcement, Ahmad al-Sayed, Chief Executive and MD of Qatar Holding, said that the London Canary Wharf financial area is expected to grow in leaps and bounds over the next few years in terms of revenue generation from office rentals, and that this was the prime reason for increased investment here. He underlined the potential for excellent growth in the area, provided it is managed efficiently. He hoped that further investments would also be encouraged and welcomed.
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