HSBC confirms £772m sale of Canary tower to Korean fund
17:46 | 13.11.09
By Deirdre Hipwell
HSBC Bank has confirmed today it has agreed the sale of its tower at 8 Canada Square to the National Pension Service of Korea (NPS) for £772.5m.
NPS, through a wholly-owned subsidiary, NPS 8CS Holdings Sarl, will purchase HSBC’s 100 per cent shareholding in Project Maple II B.V., the sole asset of which is the 998-year leasehold interest in 8 Canada Square.
Under the terms of the agreement, HSBC will retain full control of occupancy for the remaining 17.5 years of the existing 20 year leaseback period at a current rent of £46m a year.
HSBC said: “As a result of the transaction, a gain of approximately £350m will be recognised in HSBC’s income statement on completion, expected to be before 31 December 2009."
Ken Harvey, HSBC’s chief technology and services officer, said: “We actively manage our global real estate portfolio in accordance with the needs of our businesses and in the interests of our shareholders, and we are delighted the National Pension Service of Korea, one of Asia’s largest sovereign investors, will be our new landlord.”
HSBC originally entered into a sale and leaseback of 8 Canada Square in May 2007 for £1.0bn with Metrovacesa. In December 2008, HSBC took back ownership of the building for £838m, resulting in a gain of approximately £250m .
CB Richard Ellis advised HSBC. JP Morgan advised NPS.
Read more: http://www.propertyweek.com/story.asp?sectioncode=297&storycode=3153330&c=1#ixzz0WqQrui5U
