Paul Reichmann died last week and the obituaries applauded his role as initiator and developer of Canary Wharf. And indeed it is no small achievement to have carried through the construction of an office development that has reshaped London’s commercial property market. But it is not quite accurate to describe Reichmann as the initiator.
His company Olympia & York, took over the plans hatched by Ware Travelstead with the support of Morgan Stanley and Credit Suisse First Boston. In the heady days of the mid-80s, Travelstead created a desirable proposal that captured the imagination of the real estate development industry. Reichmann shaped Travelstead’s plan and the fruit of those efforts is there for all to see.
It’s good to set the record right and the parts played by each provide a cautionary tale. Travelstead was ambitious and accomplished – a larger than life character – but limited his exposure: when the equity support ran out he stopped. Reichmann was the exact opposite, entirely conservative in manner but willing to stake equity he didn’t have on the project. The consequence was that Canary Wharf bankrupted Olympia & York but not Travelstead – are both heroes?