Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Canary Wharf to enter 50/50 Walkie Talkie JV

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.”