Songbird Estates, the AIM-listed company which owns Canary Wharf Group, enjoyed a 23.8% increase in adjusted NAV in the six months to June 30.
The impressive increase was on the back of a 9.2% hike in the value of the company’s property portfolio to £6.21bn as well as a lively lettings market on the Canary Wharf estate in the first six months of this year. Adjusted NAV now stands at 229p a share compared with 185p a share.
In the six months ended 30 June 2006, Songbird secured occupiers for more than 450,000 sq ft (41,806 sq m) of space, including an agreement for sale upon completion of a new 300,000 sq ft( 27,870 sq m) building at 20 Churchill Place to Prudential Retirement Income for a consideration of £199.5m.
Chairman David Pritchard, said: ‘I am delighted to report continuing achievements into 2006 with a positive first six months of the year which saw a dividend payment of 18p a share, further lettings of approximately 150,000 sq ft (13,935 sq m) on the Estate by Canary Wharf Group, together with the commencement of approximately 700,000 sq ft (65,031 sq m) of new construction.’
Looking forward, Pritchard told shareholders that ‘progress was continuing’ at Wood Wharf with an outline planning application for the entire site expected by the first quarter of 2007.
Retail has continued to expand during the period and the redevelopment of Cabot
Hall, which will commence in January 2007 with expected occupancy in March 2008,
will increase the retail area on the estate by approximately 40,000 sq ft (3,716 sq m).