Canary Wharf is looking at forming a separate arm to keep developing in Docklands after returning cash to shareholders.
The UK’s second-largest property company told analysts it was considering setting up a company in which existing shareholders would be offered shares as an alternative to a capital return from the current development programme. CW is expected to return £2.5bn of capital to shareholders by 2006.
The new company would develop 278,700m2 (3m sq ft) at the Shed 35 site, which CW bought last year, and another 278,700m2 (3m sq ft) at sites the group hinted it is considering.
The original company could return capital as planned.
JP Morgan analyst Andrew Causer said: “The new sites will extend the development programme by around six years. Forming a new company would allow them to do that and still keep their promise to return cash to shareholders.”
Last week Canary Wharf reported interim NAV per share up 13% from £5.31 at the June year-end to £6.02, including a 25.6% rise in value to £3.25bn for the development portfolio.
