Canary Wharf’s HSBC building is on the market for offers over £1.1 billion. If the price is realised it will be a British record for a single asset, reflecting the current strength of the London market.
The 44-storey tower, also known as 8 Canada Square, is currently owned by South Korean pension fund NPS. Unlike other sovereign funds, NPS is known for the rapid turn-over of its assets and is disposing of the property to finance other investment opportunities.
HSBC, which last year ruled out relocating its HQ to Hong Kong, has 13 years remaining on its lease which is believed to involve annual, upward-only, rent reviews.
This makes the property, designed by Foster and Partners, an attractive asset and there will be no shortage of investors interested in the building. In all likelihood these will, once again, be overseas investors attracted by London’s ‘safe haven’ status.
The news of the owner’s plans to sell the property comes only days after it was announced that the Gherkin had entered receivership due to the impact of its multi-currency capital structure on joint owners IVG Immobilien.
The receivers, Deloitte, have not yet confirmed whether the Gherkin, also designed by Foster and Partners, will be sold but it is believed that the process could be initiated in the coming months.
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