Canary Wharf Seeks Investment Partner For Giant BTR Development

Canary Wharf Group is looking for an investment partner for a BTR and affordable housing scheme that will comprise more than 1,600 homes, as rented residential plays an ever-larger part in the strategy of one of London’s largest property owners.

Accounts for the six months to 30 June reveal that the company is currently seeking an investment partner for the third phase of Wood Wharf, the 5M SF development it is in the process of building to the east of the original Canary Wharf estate in Docklands. 

The third and final phase of Wood Wharf will comprise five buildings and include 1,316 private units and 307 affordable units, as well as supporting retail and amenities. 

Once fully built out, Canary Wharf’s BTR portfolio will comprise more than 3,000 rented residential units, plus affordable housing. The company is owned by a joint venture between Brookfield and the Qatar Investment Authority.

It has already completed 1,300 units across three buildings, and is planning to build more than 600 units in a tower at Park Place on the estate, a scheme that was previously earmarked for offices, EG reported. 

The accounts showed that the largest of its BTR schemes — the 636-apartment Newfoundland tower, plus affordable and intermediate units already open in the first phase of Wood Wharf — were valued at £661M at the end of June. That means they account for 9% of the company’s investment portfolio, already close to rivalling its retail holdings at 12%. 

The company delayed the repayment of the construction loan secured against Newfoundland until 2022.

Canary Wharf’s main business remains offices, which account for 79% of its portfolio. During the first six months of the year, occupancy of its completed offices ticked down from 95.2% to 93.8%.  Before the coronavirus pandemic, its office portfolio was 97.5% leased. 

The carrying value of the company’s portfolio rose by about 1% to £8.4B during the period.