Qatar Holding has taken up its rights to 24% of the ordinary shares issued by Songbird Estates, the AIM-listed majority owner of the Canary Wharf business district in London. As a result of the rights take-up, Qatar Holding has emerged as the largest investor in Songbird Estates with total investment exceeding £350 mln (about EUR 380 mln).
Qatar Holding has taken up its rights to 24% of the ordinary shares issued by Songbird Estates, the AIM-listed majority owner of the Canary Wharf business district in London. As a result of the rights take-up, Qatar Holding has emerged as the largest investor in Songbird Estates with total investment exceeding £350 mln (about EUR 380 mln).
The investment includes subscription to preference shares and participation in debt financing within the working capital facility of Songbird Estates. As a major provider of debt financing, Qatar Holding will receive warrants for additional shares that may be exercised in future to increase its shareholding in Songbird. The very strong response by the market to the share offering has meant that all the new shares were sold during the offering and Qatar Holding was not required to purchase shares as underwriter, Qatari Holding said.
Songbird Estates is expected to own 69.3% of Canary Wharf Group following the share offer and debt financing. Subsequent to the fundraising, Qatar Holding will have three board seats on Songbird Estates and one on Canary Wharf Group.
Ahmad Al-Sayed, Managing Director and CEO of Qatar Holding said: 'We believe the very positive response to the offering shows the improving sentiment towards UK commercial property in recent weeks as well as the attractiveness of this transaction. We are pleased to have taken this opportunity to increase our stake in an outstanding prime real estate portfolio with stable long-term income and high calibre management.'
