Olympia and York
Olympia & York (also spelled as Olympia and York, abbreviated as O&Y) was a major international property development firm based in Toronto, Canada. The firm built major financial office complexes including Canary Wharf in London, the World Financial Center in New York City, and First Canadian Place in Toronto. It went bankrupt in the early 1990s and was recreated to eventually become Olympia & York Properties.[1]
History
Early years
The company was founded by
The company then took a major gamble, winning the fierce bidding war for the final undeveloped property at the corner of
The Golden 80s
In the 1980s, Olympia & York grew to be the largest property development firm in the world.
In 1980, they had also acquired English Property Corp,[4] one of the largest British developers. That led the company to undertake development of the Canary Wharf site in the east of London. The 83-acre (336,000 m2) site would become the largest development project in the world, which would incorporate One Canada Square, Britain's tallest skyscraper at the time. The project ran into problems, however. Britain entered a recession, British firms were unwilling to relocate from the traditional financial centre within the City of London, and despite a personal promise by Margaret Thatcher, the London Underground line known as the Jubilee Line Extension was delayed in construction awaiting the contributions from Olympia & York (with the line eventually opening in the year 2000). The office space at Canary Wharf remained largely empty, and Olympia & York began to run out of cash. At the same time, New York City and its real estate market began a deep recession, and Olympia & York, which was now the largest property holder in Manhattan, began to feel cash flow problems which deeply affected the pyramid-like financing strategy that the Reichmann brothers had adopted.
As well, they held a significant shareholding in the
Both Reichmann brothers were strongly religious
The company diversified through the 1980s. The firm acquired a 50.1% control of
, in 1987 Olympia & York became Allied Lyons' largest shareholder.Bankruptcy
In March 1992, Paul Reichmann was forced to resign as president.[8] In May, the company filed for bankruptcy and it owed over 20 billion dollars[8] to various banks and investors. The company was finally dismembered in February 1993, and the Reichmanns were left with only a small rump known as Olympia & York Properties Corporation. The new company has again grown into a multibillion-dollar firm, including retaining a large stake of the now prosperous Canary Wharf project. However, they no longer have large holdings in New York City. Many of the NYC properties are now under Brookfield Properties.[9][10]
Portfolio
A list of notable O&Y current and previous ownership properties:
- Canary Wharf, London
- World Financial Center, NYC (entire complex)
- First Canadian Place, Toronto - including Exchange Tower, First Bank Tower.
- Maritime Life Building, Toronto
- Rogers-AT&T Centre, Toronto
- Oakwood Apartments, Portland Oregon
- Commerce Place, Edmonton AB
- 425 Lexington Avenue, NYC
- Olympia Centre, Chicago, Illinois
- KOIN Center, Portland Oregon
- Blanchard Plaza, Seattle, Washington
- University of Lethbridge Building, Lethbridge AB
- York Centre, Toronto
- 150 Ferrand Drive Ferrand Towers, Toronto
- One Yonge Street (Toronto Star Building), Toronto
- Global House, Toronto
- 40 St. Clair Avenue West, Toronto
- 2 St. Clair Avenue West, Toronto
- Queen's Quay Terminal, Toronto
- 237 Park Avenue, NYC
- Flemingdon Park Condominiums, Toronto (5 Vicora Linkway, 15 Vicora Linkway, 60 Pavane Linkway.)
- Glen Valley, Toronto (including 715 Don Mills Road, 725 Don Mills Road, 735 Don Mills Road)
- Place de Ville, Ottawa (including Phase III Place de Ville Tower E, Place de Ville Tower D)
- 55 Water Street, NYC[2]
- Purdy's Wharf, Halifax, Nova Scotia (50 per cent stake)
- 2 Broadway, NYC[11]
O&Y Properties Corporation and O&Y Real Estate Investment Trust
Following the collapse of Olympia and York, the Reichmanns began to rebuild their empire. Olympia & York Properties Corporation and O&Y REIT returned to the real estate market in Canada, owning 18 properties in six Canadian cities. In 2005 the family sold these two real estate arms to revive Brookfield Properties for $2.1 billion.[12]
References and notes
- ^ "O&Y; Properties, O&Y; REIT put on the block". www.cbc.ca. Archived from the original on April 18, 2008.
- ^ a b c "History of Olympia & York Developments Ltd". Fundinguniverse.com. Retrieved March 3, 2014.
- ^ Arnold, Laurence (October 25, 2013). "Paul Reichmann, Olympia & York Family's 'Idea Man,' Dies at 83". Bloomberg.com. Retrieved September 21, 2016.
- ^ a b c d Niosi, Jorge (December 16, 2013). "Reichmann Family". The Canadian Encyclopedia. Retrieved March 3, 2014.
- ^ Farnsworth, Clyde H. (April 22, 1992). "Olympia Gets Short-Term Bank Loan". The New York Times. Retrieved March 3, 2014.
- ^ Farnsworth, Clyde H. (May 20, 1992). "Abitibiwebice Announces a Sale to Alco Standard". The New York Times. Retrieved March 3, 2014.
- ^ "Gulf Canada Resources Limited - Canadian Enterprises". Canadianheritage.ca. Archived from the original on November 2, 2013. Retrieved March 3, 2014.
- ^ a b Ackman, Dan (April 2008). "Macklowe's bust one of many over decades". The Real Deal. Archived from the original on September 8, 2008.
- ^ "Brookfield Properties". www.brookfieldofficeproperties.com. Retrieved September 21, 2016.
- ^ Holusha, John (December 15, 1996). "From Olympia & York Bankruptcy, a New Company". The New York Times. New York City. Retrieved October 26, 2013.
- ISSN 0362-4331. Retrieved March 6, 2021.
- ^ Fasken Martineau (October 2005). "Brookfield Consortium acquires O&Y Properties and O&Y REIT for $2.1 billion". Fasken.com. Archived from the original on September 24, 2015. Retrieved March 3, 2014.