HSBC offices in Canary Wharf on brink of ┬ú800m sale
The HSBC Tower, an office property in Canary Wharf on Canada Square, is in the midst of negotiations as two parties battle it out for ownership of the building. Set to be sold for a reported sum of around ┬ú800m, the building will then be leased back to HSBC by the new owners.
According to Property Week, two parties – one from South Korea and another from Malaysia – are said to be competing against each other to buy the tower for between ┬ú790m and ┬ú800m.
Weekend reports suggest that the South Korean consortium is currently the favourite.
This is not the first time that HSBC have sold the tower. In 2007, it was sold to Spanish developer Metrovacesa for a reported figure of ┬ú1.1 billion. However as the property firm hit financial problems, they were then forced to sell the tower back to HSBC for ┬ú838 million ΓÇô resulting in a huge loss for the Spanish company.
According to the Financial Times, the high level of interest shown in the tower is testament to the strength of demand in the London property market. It’s also a positive example of how foreign investment is helping to boost the UK market.