Brookfield, Qatar make approach for Canary Wharf landlord

Qatar's sovereign wealth fund and Brookfield Property Partners have made a preliminary joint takeover approach for Canary Wharf's largest owner Songbird Estates.

'The board of Songbird will consider this approach in light of what is in the best interests of the shareholders in the company as a whole and in the meantime Songbird shareholders are advised to take no action,' the London-based property developer said in a statement.

Songbird owns around 70% of Canary Wharf Group which is the majority owner of the east London financial centre.

Qatar Investment Authority is already a shareholder in Songbird Estates with 211 million ordinary shares representing 28.6% of the company's share capital. Brookfield holds 22% of Canary Wharf Group.

The parties have until December 4 to make an offer for the company.

Songbird’s portfolio is valued at £6.28 bn and comprises 18 completed properties totalling 6.9 million sq ft with an occupancy rate of 97%.

The deal would be the second by the Qataris in Canary Wharf over the past few months. In June, a consortium including China Life Insurance and QIA snapped up Clifford Chance's headquarters in the financial district for £795 mln (€1 bn).

China Life Insurance took a 70% share in the asset, while Qatar Holding - part of the Qatar Investment Authority - bought 20%. Canary Wharf Group retained a 10% stake as well as the asset management of the property.