Canary Wharf ''firmly established as key business district - commercial mortgages

03 July 2007

The sale of the tower at 25 Canada Square for £1 billion this week has confirmed that Canary Wharf is now a key part of London''s business district, a property group has suggested.

Property prices in the area are rising because of deals such as this week''s Citigroup tower sale and the sale of the neighbouring HSBC tower for a record £1.1 billion in April, Canary Wharf Group has said.

"Blue chip occupants" are being encouraged to move into the area as a result, the group suggested.

"It is clear that Canary Wharf is firmly established as a key business district in London and has an increasing attraction to a wide variety of blue chip occupants," advised a spokesman for the Canary Wharf Group.

"The levels at which these transactions have been concluded also reflect the recent yield compression and a general increase in the valuations of property at Canary Wharf," the spokesperson added.

Landlords with commercial mortgages are feeling confident about the state of the market despite reports of a slowdown, it was recently advised.