INDUSTRY NEWS

HSBC poised to buy back HQ

HSBC is poised to buy back its London headquarters, sources close to talks told Bloomberg.

The bank is hoping to purchase the Canary Wharf property after its loan to the building’s owner, Spanish developer Metrovacesa, becomes due.

Metrovacesa has yet to re-finance its borrowing on the 45-storey block, Bloomberg reported the sources said.

“The deadline for refinancing the bridge loan is nearly up and HSBC is evaluating its options,” bank spokesperson Brendan McNamara told the news agency.

The building was initially sold by HSBC for £1.09 billion, although commercial property prices have fallen heavily since they peaked in 2007.

The deal became the most expensive single property transaction, partly because of the building’s central London location.

According to the Royal Institution of Chartered Surveyors, activity in sectors of the commercial property market has lessened and rents on offices in London have cheapened.ADNFCR-1329-ID-18898927-ADNFCR

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