Songbird Estates, the majority owner of London's Canary Wharf, said on Friday that its net asset value has dropped by 21.2% in the course of the first six months of the year, from £2.35bn at end-December 2007 to £1.85bn at the end of June this year. The company added that the value of its property portfolio fell by 9.6% (or £548mln) in the first half from £7.27bn at the end of 2007 to £6.72bn at end-June.
Songbird Estates, the majority owner of London's Canary Wharf, said on Friday that its net asset value has dropped by 21.2% in the course of the first six months of the year, from £2.35bn at end-December 2007 to £1.85bn at the end of June this year. The company added that the value of its property portfolio fell by 9.6% (or £548mln) in the first half from £7.27bn at the end of 2007 to £6.72bn at end-June.
'We have not been immune to the rapidly unfolding financial market crisis,' Songbird chairman David Pritchard said in a statement. He added that it is too early to assess the full impact of the Lehman Brothers crisis on the company's property portfolio. Lehman, which filed for bankruptcy protection on 15 September, has a lease for 1,023 million sq ft (95,000 m2) at Canary Wharf.
Songbird's total investment portfolio comprises a total of 7.9 million sq ft, of which 99,7% has been leased.
Songbird said that it has concluded rental agreements of 200,000 sq ft in the first half of the year. Additionally, the company has entered into 'exclusive negotiations' with JP Morgan and signed heads of terms for the construction of a new European headquarters at Riverside South.
Songbird Estates manages the investment of its main subsidiary, Canary Wharf Group, which focus on the development of Canary Wharf in London's Docklands.
