INDUSTRY NEWS

Pension fund to buy HSBC tower outright

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Within the next few days Canary Wharf’s HSBC tower will change hands for the third time in only two years. Spanish property company Metrovacesa purchased the tower for a staggering £1.1 billion when the market was at its peak two years ago.

However, financial issues led Metrovacesa to sell the building back to HSBC not long afterwards for £250 million less than it had paid. This time, the buyer is South Korea’s National Pension Service – the world’s fifth largest pension fund, with assets of over $200 billion.

The tower was completed in 2001 at a cost of £500 million and contains 1.1 million square feet of prime London office space. The NPS will pay a little under £773 million. HSBC currently pays around £46 million per year in rent, and intends to continue its occupancy of the building for the remaining 17 years of its lease.

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