Over nearly 30 years, developers of London's Canary Wharf had navigated the project through a variety...

  

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Over nearly 30 years, developers of London's Canary Wharf had navigated the project through a variety of economic, financial, and construction crises and, at times, faced ruin. By 2017, the project was widely recognized as a success-an internationally recognized financial district of 16 million square feet, accommodating over 100,000 workers. Yet storm clouds once again threatened the estate, as the owners had to grapple with the fallout from the U.K.'s decision to leave the European Union (Brexit) and the rise of fintech. Canary Wharf rose out of an abandoned dockland in London's hardscrabble East End. Encouraged by the government, developers believed they could build a financial district to rival or overtake The City, the square mile in which nearly all of U.K.'s financial firms were located. The government deregulated the financial services industry in a single "Big Bang" in 1986. U.K. firms merged and foreign firms flooded into London, hungry for space. Paul Reichmann, the initial builder of Canary Wharf, recognized that financial institutions required large open floorplates and reliable utilities. His company, Olympia & York, built the equivalent of a new city, creating roadways, connecting utilities, and erecting buildings designed by top architects and public spaces all over the abandoned docks and waterways. However, the government reneged on its promise to provide public transportation to the site, and tenants were slow to lease space. Olympia & York went bankrupt. Subsequent developers used nearly every combination of debt and equity to keep the project afloat. They moved from a privately financed, highly leveraged construction to bankruptcy, property securitizations, public offerings, and private equity buyouts. The financial engineering was as impressive as the structural engineering. Eventually, transport systems connected Canary Wharf to the rest of London, and the project thrived. However, Brexit and the rise of fintech presented new challenges. When Canary Wharf was built, retail establishments were an afterthought, and no plans were made for residential dwellings. Now, the Canary Wharf Group is looking to create more of a 24-hour community less dependent on financial services. Source: Canary Wharf: Financing and placemaking. (2017, November 10). Retrieved from https://som.yale. edu/case/2017/canary-wharf-financing-and-placemaking Discussion Questions M012200210 93T 1. Would financial firms leave the U.K.? Discuss your answer.oul bn s 2. Would fintech firms seck new kinds of space? Discuss your answer. 3. How should the Canary Wharf Group respond?nim sit he Over nearly 30 years, developers of London's Canary Wharf had navigated the project through a variety of economic, financial, and construction crises and, at times, faced ruin. By 2017, the project was widely recognized as a success-an internationally recognized financial district of 16 million square feet, accommodating over 100,000 workers. Yet storm clouds once again threatened the estate, as the owners had to grapple with the fallout from the U.K.'s decision to leave the European Union (Brexit) and the rise of fintech. Canary Wharf rose out of an abandoned dockland in London's hardscrabble East End. Encouraged by the government, developers believed they could build a financial district to rival or overtake The City, the square mile in which nearly all of U.K.'s financial firms were located. The government deregulated the financial services industry in a single "Big Bang" in 1986. U.K. firms merged and foreign firms flooded into London, hungry for space. Paul Reichmann, the initial builder of Canary Wharf, recognized that financial institutions required large open floorplates and reliable utilities. His company, Olympia & York, built the equivalent of a new city, creating roadways, connecting utilities, and erecting buildings designed by top architects and public spaces all over the abandoned docks and waterways. However, the government reneged on its promise to provide public transportation to the site, and tenants were slow to lease space. Olympia & York went bankrupt. Subsequent developers used nearly every combination of debt and equity to keep the project afloat. They moved from a privately financed, highly leveraged construction to bankruptcy, property securitizations, public offerings, and private equity buyouts. The financial engineering was as impressive as the structural engineering. Eventually, transport systems connected Canary Wharf to the rest of London, and the project thrived. However, Brexit and the rise of fintech presented new challenges. When Canary Wharf was built, retail establishments were an afterthought, and no plans were made for residential dwellings. Now, the Canary Wharf Group is looking to create more of a 24-hour community less dependent on financial services. Source: Canary Wharf: Financing and placemaking. (2017, November 10). Retrieved from https://som.yale. edu/case/2017/canary-wharf-financing-and-placemaking Discussion Questions M012200210 93T 1. Would financial firms leave the U.K.? Discuss your answer.oul bn s 2. Would fintech firms seck new kinds of space? Discuss your answer. 3. How should the Canary Wharf Group respond?nim sit he

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Q1 It seems likely that the financial firms would leave the UK Couple of reasons for that are 1 Dere... View the full answer