Olympia and York
Encyclopedia
 |
 |
Olympia & York (also spelled as Olympia and York, abbreviated as O&Y) was once a major international property development firm based in Canada. The firm built major financial office complexes like Canary Wharf
Canary Wharf
Canary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...
in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, the World Financial Center
World Financial Center
The World Financial Center is a complex of buildings across West Street from the World Trade Center site in Lower Manhattan in New York City, overlooking the Hudson River. This complex is home to offices of companies including Merrill Lynch, RBC Capital Markets, Nomura Group, the Wall Street...
in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and First Canadian Place
First Canadian Place
First Canadian Place is a skyscraper in the financial district of Toronto, Ontario, Canada, at the northwest corner of King and Bay streets, and is the location of the Toronto headquarters of the Bank of Montreal. At , it is Canada's tallest skyscraper and the 15th tallest building in North America...
in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
. It went bankrupt in the early 1990s and was recreated to eventually become Olympia & York Properties.
Early years
The company was founded by Paul ReichmannPaul Reichmann
Paul Reichmann is a Canadian businessman best known for his leadership of the Olympia & York a real estate development company.-Formative years:Reichmann was born in Vienna in 1930 to Samuel Reichmann, a wealthy egg merchant and his wife René...
and his brothers Albert
Albert Reichmann
Albert Reichmann was one of the five brothers that controlled the Reichmann business empire.-Life:Albert joined his brothers Paul and Ralph in Toronto...
and Ralph in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
in the early 1950s as an outgrowth of their flooring and tile company. It first built and operated warehouses and other commercial buildings in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
. The company earned a reputation for building structures faster and more cheaply than any other builder. Its first major project was the development of the vast Flemingdon Park
Flemingdon Park
Flemingdon Park is a multicultural community in Toronto, Ontario, Canada, located in the North York district of the city. It is part of federal and provincial electoral district Don Valley West, and Toronto electoral ward 26: Don Valley West...
project in Don Mills
Don Mills
Don Mills is a mixed-use neighbourhood in the North York district of Toronto, Canada. It was developed to be a self-supporting "new town" and was at the time located outside of Toronto proper. Consisting of residential, commercial and industrial sub-districts, it was planned and developed by...
.
The company then took a major gamble winning the fierce bidding war for the final undeveloped property at the corner of King and Bay street (the geographic heart of Canada's financial district). The Reichmans won the contract to build Canada's tallest building, First Canadian Place
First Canadian Place
First Canadian Place is a skyscraper in the financial district of Toronto, Ontario, Canada, at the northwest corner of King and Bay streets, and is the location of the Toronto headquarters of the Bank of Montreal. At , it is Canada's tallest skyscraper and the 15th tallest building in North America...
in 1971. The project almost collapsed, however, when reformist mayor David Crombie put a halt to major development projects. After three years of lobbying the project finally went ahead to great success.
The Golden 80s
In the 1980s Olympia & York grew to be the largest property development firm in the world. In the early 1980s the New York real estate market was severely depressed and the Reichmanns bought a group of nine skyscrapers for the low price of 300 million dollars. In only a few years the group rose in value to 3.5 billion. The company became centred on New York opening an office on Park AvenuePark Avenue (Manhattan)
Park Avenue is a wide boulevard that carries north and southbound traffic in New York City borough of Manhattan. Through most of its length, it runs parallel to Madison Avenue to the west and Lexington Avenue to the east....
. The company won the rights to the largest development project in the city when they were awarded the contract to develop the Battery Park City infill next door to the World Trade Center
World Trade Center
The original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
. This project became the World Financial Center
World Financial Center
The World Financial Center is a complex of buildings across West Street from the World Trade Center site in Lower Manhattan in New York City, overlooking the Hudson River. This complex is home to offices of companies including Merrill Lynch, RBC Capital Markets, Nomura Group, the Wall Street...
and was another great success for the firm.
Both Reichmann brothers were strongly religious Haredi Jews and were considered eccentrics for shutting down their construction sites for the Jewish Sabbath
Shabbat
Shabbat is the seventh day of the Jewish week and a day of rest in Judaism. Shabbat is observed from a few minutes before sunset on Friday evening until a few minutes after when one would expect to be able to see three stars in the sky on Saturday night. The exact times, therefore, differ from...
and for all Jewish holidays. Even while the success of O&Y made them one of the world's richest families they continued to live relatively austere lives.
In the mid-1980s the company diversified. In 1985 it bought Gulf Canada Resources Limited, a deal that attracted much controversy because it earned the company multi-million dollar tax breaks. They also acquired a 50.1% control of Brinco Ltd.
British Newfoundland Development Corporation
The British Newfoundland Development Corporation, or BRINCO was incorporated by a consortium of British companies in 1953 which undertook industrial development opportunities in the Canadian province of Newfoundland and Labrador...
in 1980 then the following year an 82% controlling interest in Abitibi-Price Inc.
Abitibi-Consolidated
Abitibi Consolidated Inc. was a Canadian pulp and paper company based in Montreal, Quebec. Abitibi-Consolidated was formed from the merger of Abitibi-Price Inc. and Stone Consolidated Corp...
As well, they held a significant shareholding in the Royal Trust Company. In 1980, they had also acquired English Property Corp, one of the largest British developers, which would eventually lead to the Canary Wharf
Canary Wharf
Canary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...
property development. Following a highly-publicized legal battle with Britain's Allied Lyons PLC
Allied Domecq
Allied Domecq PLC was an international company, headquartered in Bristol, UK that operated spirits, wine, and quick service restaurant businesses. It was once a FTSE 100 Index constituent but has been acquired by Pernod Ricard.-History:...
for control of Canadian-based distillers Hiram Walker
Hiram Walker
Hiram Walker was an American grocer and distiller, and the eponym of the famous distillery in Windsor, Ontario, Canada. Walker was born in East Douglas, Massachusetts, and moved to Detroit in the mid-1830s...
-Gooderham and Worts Distillery, the makers of the popular Canadian Club
Canadian Club
Canadian Club is a brand of whisky from Canada. Popularly known as C.C., Canadian Club began production in 1858. It was established by Hiram Walker, and was known as Walker’s Club Whiskey. The brand is now produced by Beam Inc..-History:...
brand of rye whiskey, in 1987 Olympia & York became Allied Lyons' largest shareholder.
In the late 1980s the company undertook to develop the Canary Wharf
Canary Wharf
Canary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...
site in the east of London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. The 83 acre (336,000 m²) site would become the largest development project in the world, which would incorporate One Canada Square
One Canada Square
One Canada Square is a skyscraper in Canary Wharf in the London Borough of Tower Hamlets. It is the tallest completed building in the United Kingdom since 1991, standing at above ground level and containing 50 storeys...
, Britain's tallest skyscraper. The project ran into problems however. Britain entered a recession, British firms were unwilling to relocate from the traditional financial centre within the City
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
, and despite a personal promise by Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
, the London Underground
London Underground
The London Underground is a rapid transit system serving a large part of Greater London and some parts of Buckinghamshire, Hertfordshire and Essex in England...
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, who was now the largest property holder in Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
, began to feel cash flow problems which deeply affected the pyramid-like financing strategy that the Reichmann brothers had adopted.
Bankruptcy
In March 1992 Paul Reichmann was forced to resign as president. In May the company filed for bankruptcy and it owed over 20 billion dollars 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 multi-billion dollar firm, including retaining a large stake of the now prosperous Canary Wharf project, as well as First Canadian PlaceFirst Canadian Place
First Canadian Place is a skyscraper in the financial district of Toronto, Ontario, Canada, at the northwest corner of King and Bay streets, and is the location of the Toronto headquarters of the Bank of Montreal. At , it is Canada's tallest skyscraper and the 15th tallest building in North America...
in Toronto, Ontario. However, they no longer have large holdings in New York City. Many of the NYC properties are now under Brookfield Properties Corporation.
Portfolio
A list of notable O&Y current and previous ownership properties:- Canary WharfCanary WharfCanary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...
, London - World Financial CenterWorld Financial CenterThe World Financial Center is a complex of buildings across West Street from the World Trade Center site in Lower Manhattan in New York City, overlooking the Hudson River. This complex is home to offices of companies including Merrill Lynch, RBC Capital Markets, Nomura Group, the Wall Street...
, NYC (entire complex) - First Canadian PlaceFirst Canadian PlaceFirst Canadian Place is a skyscraper in the financial district of Toronto, Ontario, Canada, at the northwest corner of King and Bay streets, and is the location of the Toronto headquarters of the Bank of Montreal. At , it is Canada's tallest skyscraper and the 15th tallest building in North America...
, Toronto - including Exchange Tower, First Bank Tower. - Maritime Life Building, Toronto
- Rogers-AT&T Centre, Toronto
- Oakwood Apartments, Portland OR
- Commerce Place, EdmontonCommerce Place (Edmonton)Commerce Place is an office & retail complex in Edmonton, Alberta, Canada. It stands at 123 metres or 27 storeys tall and was completed in 1990....
AB - 425 Lexington Avenue, NYC
- Olympia CentreOlympia CentreThe Olympia Centre is a skyscraper in Chicago. It is a mixed use building consisting of offices in the lower part of the building and residences in the narrower upper section. It was designed by Skidmore, Owings & Merrill LLP, and at 725 ft tall, with 63 floors, it is Chicago's tallest...
, Chicago, IL - KOIN CenterKOIN CenterKOIN Center is a , 35-storey, skyscraper in Portland, Oregon. The building, the third tallest in the city, was designed by the firm of Zimmer Gunsul Frasca Partnership and opened in 1984 at a cost of .-History:...
, Portland OR - Blanchard Plaza, Seattle, WA
- University of Lethbridge Building, Lethbridge AB
- York Centre, Toronto
- 150 Ferrand Drive Ferrand Towers, Toronto
- Toronto Star BuildingToronto Star BuildingToronto Star Building can refer to:*Old Toronto Star Building*One Yonge Street...
, Toronto - Global House, Toronto
- 40 St. Clair Avenue West, Toronto
- 2 St. Clair Avenue West, Toronto
- Queen's Quay TerminalQueen's Quay TerminalQueen's Quay Terminal was a cold storage warehouse facility, the Toronto Terminal Warehouse, built in 1926 by Moores & Dunford and converted to a condo/mall complex in 1983...
, Toronto - 237 Park Avenue, NYC
- Flemingdon ParkFlemingdon ParkFlemingdon Park is a multicultural community in Toronto, Ontario, Canada, located in the North York district of the city. It is part of federal and provincial electoral district Don Valley West, and Toronto electoral ward 26: Don Valley West...
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 VillePlace de VillePlace de Ville is a complex of office towers in downtown Ottawa. It currently consists of four buildings, Place de Ville A, B, and C, and the 'Podium' building, two large hotels, and the city's largest underground parking garage. The buildings are linked by an underground shopping complex...
, Ottawa (including Phase III Place de Ville Tower E, Place de Ville Tower D) - 55 Water Street, NYC
Olympia & York Properties Corporation owns 18 properties in 6 Canadian cities.