Olympia and York facts for kids
Olympia & York (also called O&Y) was a very big company that built large buildings around the world. It was based in Toronto, Canada. They built huge office complexes, like Canary Wharf in London, the World Financial Center in New York City, and First Canadian Place in Toronto. The company faced financial difficulties in the early 1990s. Later, it was rebuilt and became Olympia & York Properties.
Contents
The Story of Olympia & York
How It Started
The company was started by the Reichmann brothers, Paul, Albert, and Ralph, in Toronto in the early 1950s. They first built warehouses and other business buildings. Their first big project was developing a large area called Flemingdon Park.
Then, they took a big chance. They won a tough competition to build on a very important piece of land in Toronto. This land was at the corner of King and Bay Street, which is the center of Canada's financial area. The Reichmanns won the job to build Canada's tallest building, First Canadian Place, in 1971. The project almost stopped because the mayor, David Crombie, paused big building projects. After three years of discussions, the project finally went ahead and was very successful.
Growing Big in the 1980s
In the 1980s, Olympia & York became the largest building development company in the world. In the early 1980s, the real estate market in New York City was not doing well. The Reichmanns bought nine tall buildings for a low price of $300 million. In just a few years, these buildings were worth $3.5 billion! The company then focused a lot on New York.
They won the right to develop the biggest project in New York City. This was the Battery Park City area, next to the old World Trade Center. This project became the World Financial Center. It was another huge success for Olympia & York.
In 1980, they also bought English Property Corp, a large British building company. This led them to start building the Canary Wharf site in London. This huge area would become the biggest building project in the world. It included One Canada Square, which was Britain's tallest skyscraper at the time.
However, the Canary Wharf project faced problems. Britain entered a time when the economy was slow. Many British companies did not want to move from the old financial center. Also, a new train line, the Jubilee Line Extension, was delayed. This meant the office spaces at Canary Wharf stayed empty. Olympia & York started to run out of money. At the same time, the real estate market in New York City also slowed down. Olympia & York owned many buildings in Manhattan, so they faced big money problems.
The company also bought parts of other businesses in the 1980s. They bought a large share of Brinco Ltd. in 1980. In 1981, they bought most of Abitibi-Price Inc.. In 1985, they bought Gulf Canada. This deal caused some talk because it helped the company save a lot of money on taxes. In 1987, Olympia & York became the biggest owner of Hiram Walker, a company that made Canadian Club whiskey.
The Reichmann brothers were very religious Jews. They would close their building sites for the Jewish Sabbath and all Jewish holidays. Even though they became one of the richest families, they lived simple lives.
When the Company Faced Bankruptcy
In March 1992, Paul Reichmann had to step down as the company's leader. In May, the company officially declared it could not pay its debts. It owed over 20 billion dollars to banks and investors. The company was finally broken up in February 1993. The Reichmanns were left with a smaller company called Olympia & York Properties Corporation.
This new company has grown again into a very successful business. It still owns a big part of the now thriving Canary Wharf project. However, they no longer own many buildings in New York City. Many of those properties are now owned by Brookfield Properties.
Notable Buildings Built by O&Y
Here is a list of some important buildings that Olympia & York owned or built:
- Canary Wharf, London
- World Financial Center, New York City (the whole complex)
- First Canadian Place, Toronto – including Exchange Tower and First Bank Tower.
- Maritime Life Building, Toronto
- Rogers-AT&T Centre, Toronto
- Oakwood Apartments, Portland Oregon
- Commerce Place, Edmonton, Alberta
- 425 Lexington Avenue, New York City
- Olympia Centre, Chicago, Illinois
- KOIN Center, Portland Oregon
- Blanchard Plaza, Seattle, Washington
- University of Lethbridge Building, Lethbridge, Alberta
- 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, New York City
- 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, New York City
- Purdy's Wharf, Halifax, Nova Scotia (they owned half of it)
- 2 Broadway, New York City
Olympia & York Properties Today
After the first Olympia & York company had problems, the Reichmann family started to rebuild. The new company, Olympia & York Properties Corporation, and O&Y REIT, returned to the real estate business in Canada. They owned 18 properties in six Canadian cities. In 2005, the family sold these two real estate companies to Brookfield Properties for $2.1 billion.
