My first job as a Graduate Corporate Banking Trainee in Barclays was to manage the liquidation bank accounts of Olympia & York (O&Y), the company which built Canary Wharf. Canary Wharf a bold development, transforming what was probably the most unfashionable part of London into a world class office and retail complex.
The problem was, the location was quite remote for London. The only way to get there was via a light rail system called the DLR (Docklands Light Railway) which was totally inadequate to transport thousands of workers to Canary Wharf each day. You could get there by bus, but again, there was no real direct route from central London, so you would have to change buses in some dodgy areas.
I once went to a party on the Isle of Dogs (the district which houses Canary Wharf) before the area became all fashionable. The party was in flat in a run down, high rise housing estate. It took us a tube and 2 buses to get there and, with no public transport after 11pm, we were basically marooned on the island until the following morning at 7am, before we could get another couple of buses back to the tube station. Oh, and the guy whose party it was had a couple of heavies guarding the door because “Some nutters will always want to gatecrash and start a fight”. Was a lovely party in the end, even though I kept one eye on the door all night, just in case “some nutters” came steaming in.
Anyway, the point I was trying to make is that the difficulty of commuting to Canary Wharf made companies reluctant to move there and, as a result, the development didn’t generate sufficient income to service its constructions debts. So, into liquidation it went, just as I started my Corporate Banking career. Canary Wharf essentially became a white elephant and I did feel sad for the Reichmann Brothers (The owners of O&Y) as I admired their vision. Everyone had given up on that area of London and it took a couple of Canadians to see the potential.
As luck would have it, Fortune was to smile on Canary Wharf when the Government finally completed the Jubilee tube line extension in 1999, so companies could finally have a reliable way for their staff to get to the office – and so the exodus to Canary Wharf began and the place became a huge success.
Now, it seems that things are look shaky again as the post pandemic, WFH revolution continues with many companies deciding that they no longer need large amount of office space. HSBC, Credit Suisse and Moody’s have already decided to leave and Barclays is giving up a huge chunk of space. All of them moving back to the City.
I feel happy for the City, where I cut my teeth, as I always lamented the fact that the Banks were deserting it for Canary Wharf, but I’m also sad that Canary Wharf is once again staring into the abyss.
As for the Graduate Trainee who might be managing the next set of liquidation accounts – give me a call, I will be happy to give you some tips.