An ‘extremely active and exciting’ six months boosted the value of Canary Wharf Group’s property portfolio by 8.4 per cent, interim results published today reveal.
During the first half of the year (ending 30 June 2014) the value of the portfolio rose to just under £6.3 billion, including land and adjusted to take into account the £795 million sale of 10 Upper Bank Street.
The results show progress across all the Group’s activities, during a period in which it has sought to evolve into a diversified developer incorporating infrastructure, offices, retail space and residential property.
Letting momentum continued at a healthy pace with the take-up of 340,000 sq ft of office space during the period. The new lettings include floorspace at One Canada Square and 25 Churchill Place.
There was also substantial activity across the retail portfolio, with vacancy rates at their lowest levels ever. The Group reports ‘exceptional interest’ in both existing space and in the space under construction above Canary Wharf Crossrail Station, which is scheduled to open next spring.
In terms of the development pipeline, the Wood Wharf scheme has received outline planning permission, giving the green light to one of the largest developments in London. Planning consent has also been granted for the first residential tower in Canary Wharf enabling work to begin later this year.
The Group expresses its disappointment with the legal challenge being mounted against its joint venture Shell Centre scheme which was given the go-ahead by the Secretary of State earlier in the year. However, they remain confident that the regeneration of the South Bank site will proceed as hoped.
Looking forward, Canary Wharf Group expects to benefit from the strategic decision to move into the residential market, while continuing to sustain yields and make further progress on the commercial side.
These opportunities will be will be greatly enhanced following the arrival of Crossrail which will double the transport capacity of the estate, making it an even more attractive location to live and work.
