Return to profit for Songbird
Songbird Estates, the majority owner of the Canary Wharf development in London, on Friday announced a return to profit for 2009 as the upturn continued in the market for office space to let in the capital.
The group said its rental income for the year had risen 10.7% to £318.4m and the value of its portfolio had grown by 7.6% to £5bn in the six months to the end of December 2009.
Songbird, which underwent a restructuring last year, reported strong increases in yield on both its office and retail portfolios. It said the improved valuations reflected its high-quality letting profile, long average unexpired office lease terms with upwards-only rent provisions, and its ability to provide flexible space to meet the demands of a diverse tenant base with varying requirements for floor space.
Despite the crisis in the financial services industry, the group’s portfolio was still 96.2% let at the end of last year. The group also said it had maintained a high level of retail occupancy on its estate and continuing healthy footfall.
Songbird said the Canary Wharf Group was “well placed to meet the future anticipated demand for good quality large floor plates with readily available high specification space and adequate financial resources to undertake projects both on the estate and elsewhere in London.”
