Member Article

£2.6 billion Qatari offer for London's Canary Wharf rejected

The £2.6 billion offer by Qatar’s sovereign wealth fund and a Canadian partner to buy the firm behind London’s Canary Wharf has been rejected again.

The Qatar Investment Authority (QIA) and Brookfield Property Partners had raised their all-cash offer for Songbird Estates from £2.2 billion to £2.6 billion, just hours before a bid deadline expired Thursday night says Sky News.

Songbird had rejected the lower offer for Canary Wharf, home to HSBC, on the grounds that it “significantly undervalued” the business.

The area is set for its first residential development while Crossrail, a planned link between east London and Reading via Heathrow is to serve the area.

The Songbird statement rejecting the second offer said: “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.”

The Qatar fund already has a 29% stake in Songbird but is looking to capitalise on a strong commercial property market.

Its other property interests in London include The Shard, the tallest skyscraper in western Europe.

QIA also owns Harrods, which it bought for £1.5 billion four years ago.

This was posted in Bdaily's Members' News section by Clare Burnett .