Olympia and York
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Olympia and York was once a major international property development firm based in Canada. The firm helped build major financial office complexes like Canary Wharf in London UK and First Canadian Place in Toronto Canada. It went bankrupt in the early 1990s.
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[edit] History
[edit] Early years
It was founded by Paul Reichmann and his brothers Albert and Ralph in Toronto in the early 1950s as an outgrowth of their flooring and tile company. It first built and operated warehouses and other commercial buildings in the rapidly growing suburbs of North York. 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 project in Don Mills.
The company then took 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 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.
[edit] The Golden 80s
In the 1980s Olympia and 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 Avenue. 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. This project became the World Financial Center 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 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. in 1980 then the following year an 82% controlling interest in Abitibi-Price Inc.. 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 property development. Following a highly-publicized legal battle with Britain's Allied Lyons PLC for control of Canadian-based distillers Hiram Walker-Gooderham and Worts Distillery, the makers of the popular Canadian Club brand of rye whiskey, in 1987 Olympia and York became Allied Lyons' largest shareholder.
In the late 1980s the company undertook to develop 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. The project ran into problems however. Britain entered a recession, British firms were unwilling to relocate from the traditional financial centre within the City, and despite a personal promise by Margaret Thatcher the London Underground was not extended to the site (although it eventually did by 2000 upon the opening of the Jubilee Line Extension). The office space at Canary Wharf remained largely empty and Olympia and York began to run out of money.
[edit] Going Bust in the 1990s
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. The company was finally dismembered in February 1993 and the Reichmanns were left with only a small rump known as Olympia and York Properties Corporation. It should be no surprise that over the succeeding decade this new company has grown to a multi-billion dollar firm, including owning a large stake of the now prosperous Canary Wharf project, as well as First Canadian Place in Toronto, Ontario.
