Canary Wharf buys 1 Park Place out of administration

Canary Wharf Group (CWG) has acquired the long leasehold interest in 1 Park Place adjoining the Canary Wharf Estate. The site was purchased for £17.5 mln (EUR 20 mln) from Park Place acting through its receivers.

The area, which is located in the heart of Canary Wharf between buildings occupied by Morgan Stanley and Tubelines, currently benefits from two alternative planning consents for either 214,000 sq ft (20,000 m2) or 950,000 sq ft.

'This represents an excellent opportunity to acquire a site of strategic and commercial value to CWG. It allows further expansion of the Canary Wharf Estate, which continues to attract world-class businesses and retail brands,' said George Iacobescu, CEO of CWG.

He added: 'There is a relative lack of prime office space being developed in Central London after 2011. With an improving economy, transport enhancements and further regeneration elsewhere in East London, Canary Wharf sites such as 1 Park Place will become increasingly attractive to potential tenants.'

Last week CWG said it had reached an agreement with financial services group Barclays to rationalise and consolidate the occupation of Barclays Capital from three into two existing buildings at Canary Wharf. Barclays Capital is taking a lease on 345,953 sq ft in 20 Cabot Square recently vacated by Morgan Stanley. JLL and CBRE acted for CWG and CBRE acted for Barclays Capital in the negotiations.