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Shares in Canary Wharf hit by Lehman bankruptcy
Songbird Estates , the AIM-listed majority owner of the Canary Wharf business district, sinks 9% following news that tenant Lehman Brothers has filed for Chapter 11 bankruptcy protection.
Songbird’s “B class” shares trade at 100 pence compared with Friday’s official closing price of 110 pence and a 3.1% fall in broader property stocks measured by the FTSE 350 Real Estate Index.
Lehman Brothers occupies around 1 million square feet of office space at 25 Bank Street in Canary Wharf, Britain’s second-largest financial hub. Of the 25,000 Lehman employees worldwide roughly 5,000 work in the London office.
It pays an average £41 per square foot in annual rent at the property on a lease with around 23 years left to run.
Songbird Estates and unit Canary Wharf Group both decline to comment on Lehman’s application for bankruptcy protection and the future of its tenancy at the estate.
Songbird’s “B class” shares trade at 100 pence compared with Friday’s official closing price of 110 pence and a 3.1% fall in broader property stocks measured by the FTSE 350 Real Estate Index.
Lehman Brothers occupies around 1 million square feet of office space at 25 Bank Street in Canary Wharf, Britain’s second-largest financial hub. Of the 25,000 Lehman employees worldwide roughly 5,000 work in the London office.
It pays an average £41 per square foot in annual rent at the property on a lease with around 23 years left to run.
Songbird Estates and unit Canary Wharf Group both decline to comment on Lehman’s application for bankruptcy protection and the future of its tenancy at the estate.
Mon, 15th Sep 2008