Songbird Estates, the vehicle which took over Canary Wharf Group (CWG) last year, has recorded a 4p increase in its net asset value per share to 100p since the acquisition.
The group, publishing its financial results for the 12 months to 31 December 2004, said its net assets were £1.2bn, equivalent to a NAV per share of 100p, compared with a NAV per share of 96p at 21 May 2004, the date the company’s acquisition of CWG was declared unconditional.
Chairman Derek Bonham said the increase was attributable to the surplus on revaluation of the investment portfolio of £77.7m (13p a share), but was offset by the loss on ordinary activities for the period of £56.3m (9p a share).
The group recorded a £53.8m pre-tax loss on a turnover of £209.5m during the period.
“These financial results do not, however, fully reflect the activity within the group since the Songbird offer went unconditional on 21 May 2004,” said Bonham.
“Significant steps have been taken in pursuing the strategy for the enlarged Canary Wharf Group which was outlined during the offer process. Some of these steps were initiated prior to the period end but did not reach fruition until 2005.”
Those steps included the sale and/or refinancing of certain buildings.
Earlier this month the group sold 20 Canada Square to a subsidiary of Barclays Bank for £337.5m, and the sale of 15 Westferry Circus to a private Irish investor for £134.75m.
Bonham added that in the second half of 2004 leases over 62,781 sq ft were completed and already this year 250,000 sq ft of leases have been signed.
He said one of the aims of the leasing campaign was to minimise the concentration of cash flows from within a single business sector.
“At the end of 2004 on the Songbird Estate there was about 1.3m sq ft of office space available from the Canary Wharf Group and other occupiers.
This is equivalent to a vacancy rate of 12%, compared with a vacancy rate for Docklands as a whole of 13.5% and 13.9% for the City.
The vacancy rate on property in the Canary Wharf Group’s ownership as at 31 December 2004 was approximately 13.8%,” said Bonham.
“This will, however, fall to 11.5% after taking into account the sale of two properties and when leases on the 250,000 sq ft which are currently under offer are completed.
“Rent free periods, however, remain unchanged at circa 36 months for 10-15 year leases,” he added.
Bonham said the last 10 months had been an eventful period for the company, but added that he was confident that progress towards achieving the goals established at the formation of the Songbird group of companies could be maintained during 2005 and beyond.
References: EGi News 24/03/05
