Further to our article on 10 November 2014, Qatar fund makes joint approach for Canary Wharf, new development took place this past week, please read on. It was then question that Qatar Investment Authority (QIA sovereign wealth fund) and Brookfield Property Partners LP, a U.S. investor have approached Canary Wharf-owner Songbird Estates (SBDE.L) about a possible takeover, a deal which would increase the sovereign wealth fund’s presence in London real estate. We have learned through London property market media that the Canary Wharf owners reject improved takeover offer.
Indeed, the owners of London’s Canary Wharf development have rejected an improved £2.6bn takeover offer from the Qatar Investment Authority (QIA) and Brookfield Property Partners.
QIA and Brookfield yesterday increased their initial offer for Songbird Estates PLC, parent company of Canary Wharf Group, from 295p per share to 350p.
It was not acceptable and turned down yet again.
“The board believes the offer from QIA and Brookfield does not reflect the full value of the company, its unique position and future growth potential,” Songbird said.
Songbird directors recently revalued their business.
The bidders say that the adjusted net asset value was 304 pence per share, and so their new offer represents a 15% premium on that and more than 40% above the 247p average share prices over the past six months.
Songbird however said that the revaluation made the business now worth 381p per share.