The owner of the Canary Wharf business district in London’s Docklands today revealed the value of the estate rose by 18 per cent to £6.7 billion, underpinned by strong demand for office space.

Songbird Estates, the Morgan Stanley-backed company which bought the estate in 2004, said higher occupancy levels and a general improvement in property values helped boost the company’s net asset value per share - a key financial measure for property companies - up 48 per cent, or 89p, to 274p.

The group has benefited from strong demand from professional services companies, including banks, law firms and accountants, for office space.

Canary Wharf, which comprises the landmark 50-storey office tower, a shopping centre and neighbouring office blocks, is home to a string of blue chip firms including Barclays, HSBC, Citigroup, Lehman Brothers and Morgan Stanley.

The estate was created from the former docklands area in London’s East End and has spawned other developments. The centre has benefited from its ability to offer large, modern, offices with relative proximity to the City of London and London City Airport.

Songbird, which is listed on AIM, said 95.6 per cent of the estate’s available space had been let at the end of 2006, compared with an 89.6 per cent occupancy rate at the same point a year earlier.

The value of the estate looks set to rise further in 2007 with the progress on the development of four new buildings, all pre-let or pre-sold to to Bear Stearns, KPMG and Prudential Retirement Income.

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