Values of office space in Canary Wharf have plummeted in the first half of this year.
Songbird Estates Plc, who owns the 97 acres that make up Canary Wharf, has reported a first half loss of £592 million, after the value of real estate in London dropped.
Chairman David Prichard said: “The fall in market values at Canary Wharf is in line with the market and has been mitigated by the benefit of new lettings, expiry of rent free periods and upcoming fixed rent increases.”
The likes of Morgan Stanley, Citigroup Plc and Barclays Plc all occupy space on the Canary Wharf site, that is linked to the centre of London by underground and overground links.
Values of offices in London have fallen 17 per cent in the first half of 2008 due to the credit crunch, Bloomberg reports.
Reductions in the value of Canary Wharf has led to the company losing a value of £245.2 million.