Spanish property company Metrovacesa is to acquire the global head office of HSBC bank at Canary Wharf in London for £1.09 bn (about EUR 1.59 bn), the largest single property deal in UK history.
Spanish property company Metrovacesa is to acquire the global head office of HSBC bank at Canary Wharf in London for £1.09 bn (about EUR 1.59 bn), the largest single property deal in UK history.
HSBC, the second largest bank in the world by assets, said the bank retains full control of occupancy under the deal, while Metrovacesa takes a 998-year lease. HSBC has leased the building back for 20 years at an annual rent of £43.5 mln with an option to extend for a further five years. The 102,000 m2, 210-metre high tower at 8 Canada Square will remain the group's global headquarters.
Jesús García de Ponga, deputy to the chairman of Metrovacesa, commented: 'The acquisition of the HSBC global headquarters through this sale and leaseback transaction is evidence of our commitment to establish a significant presence in major international cities such as London and thereby achieve our aim to be one of the world's leading international real estate investors.'
HSBC said the deal is expected to complete in the first half of 2007. CB Richard Ellis and Freshfields acted for HSBC, and Colliers International in Spain, Colliers CRE and Clifford Chance advised Metrovacesa.
