INDUSTRY NEWS

Qatar Fund Purchases HSBC’s London office

The UK’s largest ever commercial property deal has been made by the Qatar sovereign-wealth fund on their acquisition of HSBC’s London headquarters.

The Qatar Investment Authority bought the London office, 8 Canada Square from the National Pension Service of Korea (NPS).

Qatar’s purchase is believed to be part of the firm’s bid to buy the company that owns much of the business district of Canary Wharf, Songbird Estates PLC.

Qatar has an enduring interest in this area of London, particularly for central London’s so called ‘trophy assets’.

Songbird Estates commenced development on the former dockyards of Canary Wharf around 20 years ago. In the present day the firm owns around 8m sq ft of its 16m sq ft of office space.

The price paid for London’d biggest building of over a million sq ft is yet to be disclosed.

8 Canada Square has changed hands four times in the past seven years, with NPS having acquired the tower for £772m in 2009.

It is thought that NPS timed its entry into the London market at its lowest and have therefore been able to capitalise on the cycle of the commercial property market.

This sale again highlights the demand of overseas forms for office space in London.

By: Kirsty MacGregor

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