The Most Expensive Office Building In London Is Up For Sale
Source: http://www.ft.com
#hsbc #office #uk #london #realestate
London's biggest and most expensive office building, HSBC's global headquarters, is up for sale at what would be a record price for the British market, in a sign that the capital's -commercial property market is booming again, reported The Financial Times.
The 44-storey, 102 thousand square meters building in Canary Wharf, east London, is being -marketed by the estate agents JLL and GM Real Estate for offers above US$ 1.85 billion, say sources with knowledge of the property.
The HSBC tower became the most expensive building in London when it sold for US$ 1.83 billion at the height of the UK property boom in 2007.
HSBC has a 13-year lease on the building and is 0committed to annual upward-only inflation-linked rent reviews, according to sources familiar with the tenancy arrangements. This would make it an attractive proposition for investors seeking a hedge against inflation.
Last year, HSBC ruled out the possibility of relocating its headquarters to Hong Kong, opting to stay in the UK despite stricter European restrictions on bankers' bonuses.
The building was designed by Foster + Partners and built in 2002, and HSBC raised almost US$ 1.85 billion by selling it to the Spanish property company Metrovacesa, only to take ownership back in-house in late 2008 when Metrovacesa hit financial difficulties.
The South Korean national pension fund NPS then bought the building - whose address is 8 Canada Square - from HSBC the following year for nearly US$ 1.34 billion. NPS, which is being advised by JPMorgan, is seeking to sell in order to free up funds to take advantage of other opportunities across Europe.
The London market has seen just two deals at higher prices than NPS's US$ 1.85 billion target; but both involved multiple-building estates rather than single assets.
Late last year Blackstone sold its 50 percent stake in the City's Broadgate office -complex to Singapore -sovereign wealth fund GIC, and Armenian billionaire Dikran Izmirlian sold the More London estate to the Kuwait state property company St Martins. Both deals were reportedly priced at about US$ 2.85 billion.
The 44-storey, 102 thousand square meters building in Canary Wharf, east London, is being -marketed by the estate agents JLL and GM Real Estate for offers above US$ 1.85 billion, say sources with knowledge of the property.
The HSBC tower became the most expensive building in London when it sold for US$ 1.83 billion at the height of the UK property boom in 2007.
HSBC has a 13-year lease on the building and is 0committed to annual upward-only inflation-linked rent reviews, according to sources familiar with the tenancy arrangements. This would make it an attractive proposition for investors seeking a hedge against inflation.
Last year, HSBC ruled out the possibility of relocating its headquarters to Hong Kong, opting to stay in the UK despite stricter European restrictions on bankers' bonuses.
The building was designed by Foster + Partners and built in 2002, and HSBC raised almost US$ 1.85 billion by selling it to the Spanish property company Metrovacesa, only to take ownership back in-house in late 2008 when Metrovacesa hit financial difficulties.
The South Korean national pension fund NPS then bought the building - whose address is 8 Canada Square - from HSBC the following year for nearly US$ 1.34 billion. NPS, which is being advised by JPMorgan, is seeking to sell in order to free up funds to take advantage of other opportunities across Europe.
The London market has seen just two deals at higher prices than NPS's US$ 1.85 billion target; but both involved multiple-building estates rather than single assets.
Late last year Blackstone sold its 50 percent stake in the City's Broadgate office -complex to Singapore -sovereign wealth fund GIC, and Armenian billionaire Dikran Izmirlian sold the More London estate to the Kuwait state property company St Martins. Both deals were reportedly priced at about US$ 2.85 billion.
