Canary Wharf already had an interest in the properties that they had acquired when Clifford Chance took their 10 Upper Bank St. premises on the Canary Wharf estate. That meant Canary Wharf took over the lease on the Aldersgate Building for a term of 25 years expiring in 2017 with, subject to review, an annual passing rent and outgoings of euro 33 million ($43 million) a year. The other property, 20 Little Britain, is let under a variety of leases, most of which expire in 2012.
Payment is from existing funding and a statement from the company adds that "this acquisition is in line with the Songbird Estates plc strategy of optimising value for shareholders."
This is the second foray by Canary Wharf outside its Docklands home base. The company, owned by a Morgan Stanley-led consortium, bought a 25.5% stake in Great Portland Estates. But GPE's property portfolio is mainly in the West End. This is the first time Canary Wharf has actively bought a stake in the city. Historically, Docklands and the city have competed to attract the financial occupiers that would enable them to claim to be the financial heart of Britain.
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