Wharf keeps pledge to investors

CANARY Wharf has unveiled plans to buy back £300m of shares this year and return £1.5bn to shareholders by the end of 2005. The Docklands property group is making good a promise made to investors at its flotation in 1999.

Chief executive George Iacobescu said the money was being handed back early because of the company's spectacular success. 'Since flotation we have added £2bn to the net asset value of Canary Wharf, equal to a compounded annual increase of 23%,' he said. 'We have exceeded the projections set out in the business plan when we floated and therefore we are able to bring forward the return of capital.'

According to today's half-year results, the company's estate is worth £4.5bn. In total shareholders stand to gain some £2bn. A further £250m will be spent on share buybacks in the next two years, which together with the £203.6m of shares already acquired takes the buyback total to £750m.

From 2003, Canary Wharf will return a further £250m for three years, although it is not quite sure what form it will take. A final £500m will be released when the last four sites next to the Barclays building are developed. After this, investors can look forward to a regular dividend.

Pre-tax profits increased to £26.2m as rents and service charges rose 27% to £94.2m for the six months ended 6 March. The net asset value per share has risen by 1.7% to 709p. The stock was off 1p at 455p by early afternoon.