NPS confirms property investment deal for 8 Canada Square

Monday, November 16, 2009

HSBC sells its tower to the Korean company.

By Ashley Brunskill

The National Pension Service of Korea (NPS) has agreed a property investment deal for 8 Canada Square from HSBC Bank.

NPS will purchase HSBC's 998-year leasehold interest in the tower in a deal worth £772.5 million.

As part of the terms of the agreement, HSBC will retain full control of the building for the remaining 17.5 years of the existing 20 year leaseback period at a current rent of £46 million a year.

HSBC said: "As a result of the transaction, a gain of approximately £350m will be recognised in HSBC’s income statement on completion, expected to be before December 31st 2009."

Ken Harvey, HSBC’s chief technology and services officer, commented that the company was delighted to have one of Asia's largest sovereign investors as its new landlord.

Approximately 8,000 workers are based at 8 Canada Square, the world headquarters of HSBC, one of the world's largest banks.

Source: ask-re The Property People LLP