Canary Wharf Group announced today that trading since June 30 has been in line with its expectations.
The company also said it remains positive about prospects, although it recognises “the current economic climate” and will concentrate on letting vacant space.
Canary Wharf said the economic slowdown, which has been worsened by the US attacks, will inevitably affect the London office market in the short term.
It pointed out that on the Canary Wharf estate all the buildings which have already been completed are fully let, and uncommitted space, which is due to become available between 2002 and 2004, represents just 9% of the total original estate.
The company’s annualised rent roll, currently at £146m, is set to double to £296m by 2005. The expected rise is based on contractual arrangements and ignores the effect of rent reviews, which are due on 371,600 sq m (4m sq ft) over the period to 2005.
Along with today’s current trading update, the company said it sent a circular to shareholders with details of its planned restructuring, which is being proposed in order to facilitate future returns of capital to shareholders.
Canary Wharf plans to return around £2bn to shareholders over the next four years, depending on market conditions and the group’s ability to raise long-term finance.
Since the middle of June, the company has bought back and cancelled 36.9m shares, returning around £187m to shareholders as part of this return.
EGi News 18/10/01
