Morning:
9°c
Sovereign wealth funds from Qatar and China today pledged to plough millions of pounds into Canary Wharf weeks after rescuing its owner from collapse.
Qatar Holding and China Investment Corporation will help fund the purchase of an 8.45% stake in Canary Wharf by Songbird Estates for £112.5 million.
The deal, which sees Songbird buy 54 million shares from German bank Commerzbank, increases Songbird's holding in Canary Wharf to 69.3%.
It also increases Qatar and China's interest in the Docklands estate as they own more than half of Songbird.
The sovereign wealth funds secured their stakes in Songbird three weeks ago by helping the firm repay its crippling £880 million loan from Citigroup.
It involved Qatar and China buying £275 million of preference shares in Songbird - Qatar today confirmed it is spending £150 million - as well as about £550 million of ordinary shares along with other investors including Simon Glick, who has long held an interest in Songbird and Canary Wharf.
Songbird said this second element will be increased to £620 million to fund the purchase of Commerzbank's stake in Canary Wharf.
