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Canary Wharf Contractors margin balloons to 47%

Canary Wharf Contractors has reported a pre-tax margin of 47 per cent as a host of its projects kick off across the capital.

The contractor reported a turnover of £148.4m and a pre-tax profit of £69.8m for the year to 31 December 2016, compared with a turnover of £124.9m and a pre-tax profit of £2.3m a year earlier.

The firm has a number of major projects currently under construction in the capital, including the £400m Newfoundland development (pictured) – the Canary Wharf district’s first residential tower.

It has also launched the 57-storey Herzog & de Meuron-designed One Park Drive residential tower, which forms part of a new host of residential towers that are due to complete in 2020.

One Park Drive sits within the wider Canary Wharf New District masterplan, immediately to the east of Canary Wharf, and has planning consent for 4.9m sq ft of development space, including 3,100 residential units, 1.9m sq ft of commercial space and 270,000 sq ft of retail space.

Canary Wharf Contractors said two retail buildings have already started on site, with concrete substructure works under way.

The firm is also building One Bank Street, a 715,000 sq ft mixed-use project, for which the concrete core and substructure are now complete ahead of a scheduled completion date of March 2019.

In addition, it has submitted a planning application for an 850,000 sq ft building at 10 Bank Street.

Elsewhere the group is acting as construction manager on the redevelopment of the Shell Centre on the bank of the Thames, which will provide 523,000 sq ft of office space, 79,000 sq ft of retail units and 835,000 sq ft of residential space.

On last year’s EU referendum, Canary Wharf Contractors said the implications were “not yet clear”, adding that changes to stamp duty had contributed to a slowing of residential land prices.

However, the firm said that depreciation in the pound and “the relative transparency of the real estate market in London, which is viewed as both stable and secure,” had helped to attract foreign investors.

The group’s parent company Canary Wharf Group was acquired by Brookfield Property Partners and the Qatar Investment Authority for £2.6bn in April 2015.

In its most recent full-year accounts, Canary Wharf Group posted a pre-tax loss of £39m for the year to 31 December 2016.

Canary Wharf Contractors has been contacted for comment.

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