HSBC plans HQ sale, leaseback

  • Business
  • Tuesday, 06 Feb 2007

HONG KONG: Global lender HSBC Holdings said yesterday it is considering a proposal to sell and lease back its group headquarters in London, following a newspaper report of a possible £1bil sale. 

Hong Kong-based HSBC spokeswoman Vinh Tran said the bank had no intention of vacating the 45-storey HSBC Tower, or 8 Canada Square, at Canary Wharf, but was looking at a plan to sell it and then rent it back for 15 years. 

“Demand for property in the UK is quite good and we're reviewing the matter,” Vinh said.  

“There's a proposal to sell and lease back for 15 years. Everything is under discussion at the moment and no figures have been confirmed.” 

Quoting a property consultant, the Hong Kong Economic Times said yesterday that HSBC would sell its headquarters for £1bil and then pay £45mil a year in rent, which would represent an initial yield of 4.5%. – Reuters

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