Canary Wharf Group has sold 1-5 Bank Street, its office building occupied by Société Générale and the European Bank for Reconstruction and Development, to affiliates of Brookfield and the Qatar Investment Authority for £625mn. The transaction sees Canary Wharf repaying senior debt worth more than £450mn.

The sale follows Barclays purchasing its nearby headquarters at One Churchill Place for £750mn, as the east London financial district navigates a lacklustre office market affected by rising interest rates since 2022. Investment in European office buildings has been slow despite strong rental growth prospects, with Blackstone recently pausing a £250mn Canary Wharf building sale awaiting improved conditions.

Canary Wharf's overall property portfolio is now valued at £5.8bn as of June 30, with office buildings increasing by £74mn excluding properties held for sale. The valuation growth helped pre-tax profit swing to £176mn in the first half, up from a loss of £33mn in the same period a year ago. Pw C recently chose Canary Wharf for a new UK hub, planning to take 350,000 sq ft while its current headquarters are renovated.