Iacobescu joined the team before building work started. In 1987, he was senior vice-president, construction, at Olympia & York, the Toronto-based company run by the Reichmann brothers, which was appointed by the London Docklands Development Corporation to build the 29 ha estate.
Olympia & York was not a popular choice, with some questioning its commitment to quality architecture. But it took on a unique challenge: "Most developers develop in areas that are already defined as 'places'. We had to create a place," says Iacobescu.
The developer retained the broad masterplan for the estate drawn up by US architect Skidmore Owings & Merrill, but over the years hired superstar architects such as Norman Foster, Cesar Pelli and Richard Rogers to design buildings. Work started in 1988, nearly nine years after the LDDC was set up. But it was not plain sailing for the £4.5bn project.
In 1992, Olympia & York went into administration. Construction on Canary Wharf was halted. The banks now controlled the development. But three years later, former Olympia & York boss Paul Reichmann was back. His new consortium bought the site from the banks and, this time round, the group eschewed speculative development, only putting up a building once a tenant was on board.
In 1997, Iacobescu was installed as chief executive and, speaking from his office on the 30th floor of One Canada Square, told Building: "Canary Wharf is back in business." He was right. The Docklands Light Railway had been completed, connecting the site to the City, the Limehouse road link opened and a second wave of development – including the 67,500 m2 Riverside hotel, leisure and retail project – was under way. Foster and Partners' Jubilee Line station was also taking shape, to enhance the estate's links with the centre of London and its reputation for high-quality architecture.
The station was being built next to another of Foster's buildings, the 52,000 m2 UK headquarters for Citibank (now Citigroup). The Riverside and Citigroup schemes were run by a team of in-house specialists that had already built half the estate. Iacobescu says: "Many of our senior management have been involved in Canary Wharf since its inception. That experience and knowledge has been crucial in bringing the development forward."
Rents were lower than those in the City and West End and the new-build offices had large floor plates, so it's no wonder major tenants signed up. In 1998, HSBC announced that it would relocate its headquarters to a £500m, 42-storey tower at Canary Wharf. As the east London upstart started to challenge the Square Mile, Canary Wharf Group joined one of its major institutions – the London Stock Exchange. In March 1999 the company announced its intention to go public, with a value of £2.6bn. The initial public offer share price was 330p, effectively floating a quarter of the company, and the shares were immediately one of the most actively traded stocks on the exchange.
At 31 December last year, the company had investments in 680,000 m2 of existing property and, despite the deteriorating London office market, 93.3% of its space was let. A further seven buildings were under construction, with 87.7% of the space already leased. But Canary Wharf Group has almost filled the estate. To keep up its rivalry with the City of London, it will have to expand (see pages 72-74). Iacobescu says: "We will continue to build out the original estate, while putting the wheels in motion to ensure we will be in position to build out the new areas in years ahead."
In March, Iacobescu's team unveiled designs for two schemes outside the original estate – North Quay, a 200,000 m2 office and retail scheme designed by Cesar Pelli and Will Alsop; and Riverside South, a 156,000 m2 office project by Rogers. These are currently going through the planning process.
Iacobescu attributes Canary Wharf's success to the level of control the group has as landlord, manager, contractor and developer. "I would describe our philosophy as having a commitment to building a high-quality and life-enhancing day-to-day environment," he says. To have created that environment in 15 years, from a "wasteland", is an astonishing achievement.
An introduction from George Iacobescu
The key to Canary Wharf’s success is the people that work for Canary Wharf Group. There are very few companies that could put together such a team; one capable of transforming a derelict wharf into one of the premier districts in Europe. We have constructed more office space in London than any other property group – all on time and budget. Many of the people here today were involved since 1987, and that continuity has been critical to our success.A great deal of thought and attention has been put into making the estate a green and pleasant environment, not just for our workers but for visitors and the local community. We also provide a host of shops, a comprehensive public art programme, and support a variety of multi-faith celebrations.
We would need another magazine to talk about all the people that contribute to the success of Canary Wharf. This supplement looks at the contribution of many of them and celebrates the last 12 years of achievement.
I hope you enjoy it.
The start of something big
1988Canary Wharf gets under way in April as the first sheet pile is driven in to form the cofferdam for the tower that will become One Canada Square. More than 1200 people are employed on the construction project. Commercial barge traffic on the Thames is massively boosted by the scheme, from a negligible amount to some 300 boats a month. The London Docklands Development Corporation is hauled before the government for its part in selling land to Olympia & York for only £160,000 pounds a hectare.
1989
Work has started on all major buildings but an eight-week unofficial strike and subsequent work-to-rule by steelworkers drastically slows construction. By the end of the year, One Canada Square has only been raised 12 storeys above ground. The workforce numbers 2800.
1990
In March, O&Y removes contractor Ellis-Don McAlpine from its job constructing the tower. Within eight months, One Canada Square has risen from 21 storeys to its full height of 235 m. In November, the tower’s steel pyramid is completed. Work on the rest of the estate is up to six months ahead of schedule. Some 4500 people are working on it.
1991
State Street signs up as the first tenant. O&Y announces that it has let 57% of the space on the site. As the 539,000 m2 first phase nears completion, official figures reveal that London has too much office space – over-capacity of 2,000,000 m2 to be precise. O&Y delays the announcement of the next phase of construction. In August, the first tenants move in.
1992
In April, the Telegraph Group moves into One Canada Square. The slump in the property market begins to hurt and O&Y goes into administration. By December, though, 2000 office and retail staff have moved in.
1993
O&Y comes out of administration, renamed Canary Wharf Ltd. Fifteen shops and restaurants are opened and, by October, the working population has risen to 7000. Construction on the Jubilee Line Extension starts in December.
1994
The working population rockets to more than 12,800 as companies including Mirror Group, The Independent and London Underground let space on the site. Nearly 30 retail and restaurant outlets are now open.
1995
The development is now 75% let. However, the flood has slowed to a trickle – just over 1000 employees join the ranks of Isle of Dogs-based workers in 1995. In December, Canary Wharf is sold to an international consortium that includes Paul Reichmann.
1996
Canary Wharf Ltd and Hotel Properties unveil plans for Canary Wharf Riverside, a hotel and leisure development on the river to the west of Canada Square and Citibank announces that it has signed a deal to build a 52,000 m2 corporate office building at Canary Wharf. The working population is now up to 14,000 with newcomers including the Bank of China and Reader’s Digest Association.
1997
The working population has risen to 15,000. February sees the ground-breaking for the Citibank building and, in June, construction starts on Canary Riverside. Canary Wharf Ltd begins working on designs for a second phase of major works on Heron Quays. And, in September, Credit Suisse First Boston announces that construction is to start on a 26,000 m2 building to adjoin its premises at Cabot Square. By 31 December, there are more than 21,000 workers in Canary Wharf. It is 82% let. 1998 Foster and Partners’ Citibank building is topped out in May. Later in the year, HSBC Holdings finalises the contract to construct a 102,000 m2 headquarters, also by Foster. In November, construction starts on a 16,000 m2 speculative building at 15 Westferry Circus, now leased by Morgan Stanley. The working population rises to 23,000.
1999
Construction begins on HSBC’s 8 Canada Square and Boots become the first major retailer to sign up for the Canada Place shopping mall. In April, Canary Wharf floats on the London Stock Exchange as the working population breaks through the 25,000 barrier and 95% of the buildings are let. The Jubilee Line link opens in September, taking pressure off the crowded Docklands Light Railway.
2000
With a working population of 27,000, Canary Wharf is now 100% let. But building work continues. Citigroup and Clifford Chance agree terms for the construction of the 93,000 m2 Citigroup tower. Canada Place mall opens in March, 100% let. From September, a flurry of leasing agreements kick-start the Heron Quays development: Morgan Stanley Dean Witter, Northern Trust and Clifford Chance all take space. Work also starts on the Jubilee Place mall, due to open in 2003.
2001
At the start of the year, Lehman Brothers signs up to lease 93,000 m2 at 20 Bank Street in Heron Quays. And construction reaches its literal peak on the two towers alongside One Canada Square. September sees further leases at Heron Quays for Allen & Overy and Skadden, Arps, Slate, Meagher & Flom. In September, Reebok announces that it is planning a 9300 m2 sports club. The working population stands at 41,000.
2002
Clifford Chance and Northern Trust take up options to increase their square footage. Work is now in full flow on Heron Quays. Five office buildings, a new DLR station and a 8300 m2 underground shopping centre border and burrow underneath Jubilee Park. In November, 25 Bank Street is topped out; and the Reebok Sports Club and Waitrose Food & Home open. The working population is more than 55,000.
2003
Work continues at Heron Quays, all of which is due for completion towards the end of the year. Jubilee Place is virtually 100% let. The working population stands at 58,000. This is expected to rise to more than 65,000 as the Heron Quays buildings are occupied and to 100,000 in the near future.
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