Real Estate

Canary Wharf’s veteran CEO Iacobescu to step down


George Iacobescu, the man who led Canary Wharf’s transformation from derelict dockyards in east London to a financial centre larger than Frankfurt, is stepping down as chief executive of the site’s owner after more than two decades.

The 73-year-old, who fled communist Romania in 1975, is currently both chief executive and chairman of the Canary Wharf Group. He will move to executive chairman later this year.

Shobi Khan, most recently president and chief operating officer of US retail landlord General Growth Properties, will take over as chief executive in October. GGP was acquired last year by the Canadian group Brookfield, which jointly owns the Canary Wharf Group with the Qatar Investment Authority.

“We need to renew the company. There is a new generation coming,” said Sir George. “I’m no spring chicken. You have to acknowledge life,” he added.

However, his departure from the CEO role comes at a time when Canary Wharf, the headquarters of banks including HSBC and Barclays and workplace of 120,000 people, faces twin challenges from Brexit and a revolution in the office rental market spearheaded by WeWork.

After escaping the communist regime of Nicolae Ceausescu, Sir George presided over the development of London’s second financial centre, which was conceived by developer Paul Reichmann and backed by then-prime minister Margaret Thatcher.

He initially worked for developer Olympia & York before joining the newly formed Canary Wharf Group. Brookfield and the QIA acquired the group following a takeover battle in 2015.

Brookfield and the QIA would like him to stay in his new role for at least five years, though no formal timetable has been agreed, Sir George said.

Canary Wharf is expanding eastward with the Wood Wharf development, which will include 3,600 homes. It is also pursuing external projects, including a possible bid for the troubled Earl’s Court housing development in west London.

The company “can add value to a very difficult, very challenging development” at Earl’s Court, Sir George said. “We believe we can create value for [local authorities] Hammersmith and Kensington & Chelsea, for the Greater London Authority.”

Canary Wharf Group may not succeed in buying the site, which has attracted multiple suitors, he cautioned, but it is one of several external schemes the group is looking at.

“We want to grow the company . . . To allow the company to function well and to look for future development projects, we are looking for additional weight and additional quality” he said.

Mr Khan, who was selected from more than 50 candidates, will take on responsibility for capital allocation, asset management, leasing and finance. Sir George will continue working full time and will handle construction, development and external relations.

Mr Khan was previously chief investment officer at the real estate investment advisers Bentall Kennedy and senior vice-president at Equity Office Properties.

He said Canary Wharf was “one of the most iconic developments in the world”. “I’m honoured to have the opportunity . . . to work closely with Sir George and the rest of the outstanding team,” he said.



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