An attempt by Qatari investors to own more of London's skyline has been rejected by the company behind the Canary Wharf development.
Qatar Investment Authority, which recently bought HSBC's HQ in the London financial district, has made a joint approach for Songbird Estates, in the latest move by the Gulf state to pick up prime real estate in the capital.
Songbird owns 69 per cent of Canary Wharf Group, which has a number of prime addresses in the heart of the capital in its £5.5 billion ($A10.04 billion) portfolio, including a stake in the Walkie Talkie building at 20 Fenchurch Street in the City.
QIA owns Harrods and Chelsea Barracks, and has a 29 per cent stake in Songbird. The emirate is also behind the Shard skyscraper, through a separate vehicle.
The joint approach from QIA and Canada's Brookfield Property Partners valued Songbird at £2.2 billion, but this has been rejected on the grounds that it "materially undervalues" the company and its development pipeline.
Shares in Songbird rose by nearly a quarter yesterday after it disclosed details of the approach.
The high-rise buildings of Canary Wharf transformed the former Docklands area of east London when it was redeveloped in the 1980s. It is now home to some of the world's biggest banks.
QIA and Brookfield have until a December 4 "put up or shut up" deadline under takeover rules should they wish to make a firm offer.
Songbird chairman David Pritchard said: "This proposal significantly undervalues Songbird and does not reflect the inherent value of the business and its underlying assets.
"The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11 million square foot development pipeline, the largest in London."