Canary Wharf Group’s diversification beyond offices has got a boost, with the landlord’s shareholders investing £400 million to help further transform the estate.
Proceeds from the investment from Brookfield and Qatar Investment Authority will be used to “complete the strategic repositioning” of Canary Wharf and build out additional residential and life sciences projects on the estate, the landlord behind the Docklands financial district said.
The firm is among building owners in the capital that have seen the office sector hit by the post-pandemic popular hybrid working model.
Earlier this year HSBC outlined plans to exit its 8 Canada Square skyscraper in Canary Wharf by 2027.
Under the leadership of Shobi Khan, the company is becoming less reliant on offices, and has been growing its residential division, with more home planned, and adding new stores and restaurants to the estate.
There are 3,500 people living at Canary Wharf and there were over 54 million visitors last year.
Boosting its life sciences offering is also a key focus, and working with developer Kadans Science Partner it got planning approval in July for a 823,000 square feet tower that can provide workspace to a host of science businesses including those in biotechnology, genomics and medical tech for example.
The latest commitment from the shareholders is by way of a £300 million equity subscription and a £100 million revolving credit facility.
Brian Kingston, chief executive of Brookfield Real Estate, said: “Canary Wharf continues to evolve into a vibrant and diverse estate well-positioned to meet the needs of the future."
He added: "As a long-term, patient investor with flexible balance sheet capital and half a century of transitioning mixed use assets into iconic urban districts, we are pleased to continue to support CWG on its journey alongside our partners, and believe the estate holds significant long-term value creation potential.”
