AIM-listed Songbird Estates is purchasing 54 million shares in Canary Wharf from Germany's Commerzbank for £112.5 mln (EUR 125 mln). The transaction increases Songbird's interest in the 650,000 m[sup]2[/sup] London office estate from 60.8% to 69.3%.
AIM-listed Songbird Estates is purchasing 54 million shares in Canary Wharf from Germany's Commerzbank for £112.5 mln (EUR 125 mln). The transaction increases Songbird's interest in the 650,000 m2 London office estate from 60.8% to 69.3%.
The share acquisition is being supported by Songbird's main shareholders, led by Qatar Holding.
In recent weeks, Songbird outlined plans for an issue of ordinary and preference shares to fund the purchase of £880 mln of senior loan facilities from Citibank. Songbird said on Friday it intended to fund the share purchase through a combination of an increase in the size of the ordinary equity element of the share issue coupled with a debt facility.
It is expected that the ordinary equity element of the share issue will be £620 mln and the preference share element will be £275 mln. The balance will be funded from a debt facility which may take the form of a shareholder loan from Qatar Holding, China Investment Corporation, Morgan Stanley Real Estate Funds and GF Investments.
In a separate statement, Qatar Holding, which intends to become the largest shareholder in Songbird, said in intended to enlarge its investment in the AIM-listed company. In addition Qatar Holding will be a leading participant in providing the new debt facility.
Qatar Holding will also be the lead participant in the £275 mln preference share issue, providing £150 mln.
