The National Pension Service of Korea (NPS) has agreed to acquire HSBC's headquarters in Canary Wharf, London for 拢772.5 mln (EUR 863 mln) in cash.
The National Pension Service of Korea (NPS) has agreed to acquire HSBC's headquarters in Canary Wharf, London for 拢772.5 mln (EUR 863 mln) in cash.
This is the third time in two years that ownership of 8 Canada Square has changed hands. HSBC originally entered into a sale-and-leaseback transaction of the property with Spanish real estate firm Metrovacesa for just over 拢1 bn in May 2007. HSBC took back ownership of the building from debt-strapped Metrovacesa in December 2008, resulting in a gain of about 拢250 mln.
The bank said that the latest sale to NPS would result in a gain of about 拢350 mln being recognised in HSBC's income statement on completion, which is expected to take place before 31 December 2009.
NPS, through a wholly-owned subsidiary, NPS 8CS Holdings, will purchase HSBC's 100% shareholding in Project Maple II BV, 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 拢46 mln per annum.
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.'
