Canary Wharf Group may agree to enter a 50-50 joint venture on the Walkie Talkie, and then sell a 35 per cent share of the project to its investors, Songbird Chairman David Pritchard said today.
The comments were made in a conference call, following the release of Songbird’s interim results, which posted a 6 per cent rise in net asset value as the demand for offices across the estate held firm against the UK’s shaky economic outlook.
The developer has been in talks with Land Securities with a view to establishing a joint venture for the project as part of a strategy to expand into developments in central London.
The firm also announced that it could be set for a £76 million payout if JP Morgan decides to axe plans to develop its bespoke European headquarters, saying it would retain the fee if construction is postponed or deferred altogether, following speculation over whether the development would go ahead due to fears of a possible backlash from banking regulators.
“If construction is postponed, or deferred altogether, Canary Wharf Group will retain £76m representing a portion of the developer’s profit related to the development, of which £68.5m had been received by 30 June 2010,” said the report. “If JP Morgan proceeds with full construction, additional fees will be due.”