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Canary Wharf Group plc ('Canary Wharf') announces that it has sold a 999 year leasehold property situated at 20 Canada Square (the 'Property') to a subsidiary controlled by Barclays Bank PLC ('Barclays') for consideration of £337.5 million (including tax allowances), to be paid in cash (the 'Disposal'). Proceeds from the Disposal will be used to pay down debt currently secured on the Property and for general corporate purposes. The Property is principally let to British Petroleum’s Integrated Supply and Trading Division ('BP-IST') and The McGraw-Hill Companies. As at 30 June 2004, it was valued by CB Richard Ellis at £305 million (including tax allowances). Current rent passing is £12.2 million per annum, which rises to £20.5 million on the expiry of BP-IST’s rent free period in 2006. Canary Wharf is providing certain rental support of up to £1.8 million per annum for a maximum period of 3 years. The Property is a 555,000 sq ft 12-floor glass and steel building designed by Skidmore Owings & Merrill. This Disposal continues Canary Wharf’s stated strategy of assessing, and where appropriate, executing a selected and limited number of property transactions. The subsidiary of Barclays has in turn entered into arrangements with Brascan Corporation ('Brascan') pursuant to which a subsidiary of Brascan will acquire a controlling interest in the Property. | |||||||||||||||||||||||
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Enquiries to: John Garwood Group Company Secretary +44 207 418 2312 |
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