China saves Songbird in a £880m deal

China Investment Corporation, the sovereign wealth fund of China, has joined a consortium to help bail out the London's Canary Wharf, in its first big investment in UK.

Songbird Estates, the owner of Canary Wharf, informed on Friday that China Investment Corporation would form a consortium with Qatar Holding and several other investors to provide over £880 million in new equity.

The recent deal would save Songbird Estates from bankruptcy.

David Pritchard, the chairman of the company, said, "This deal secures the future of Songbird on the best possible basis for our shareholders."

The amount worth over £880 million is needed to return a loan, which the Songbird Estates owe to United States' bank, Citigroup.

The value of Canary Wharf, which in east London's Docklands houses the offices of major banks and media groups, has dived since 2007 due to adverse economic conditions.

The value of the portfolio of Songbird, which owns 60 per cent of Canary Wharf, dropped about 30 per cent to £4.9 billion in 2008.

Canary Wharf employs around 100,000 people.