HSBC sells London HQ

Last update: Fri Nov 13 2009 18:53:21

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HSBC sells London HQ

Fri Nov 13 2009 18:53:21

HSBC headquarters Canary Wharf is set for a facelift after the bank HSBC announced the sale of its group headquarters building to the National Pension Service of Korea (NPS) for £772.5 million.

The building, which dominates the skyline of London's financial district in the Docklands area, stands beside 1, Canada Square which is one of the capital's largest landmarks.

The announcement will see NPS purchase a 998-year leasehold interest in Canada Square. HSBC will remain in the building for the remaining 17 and a half years of its lease and it will continue with its current rental payment of £46 million per year. but NPS will be the landlords after the deal is completed, expected to be before the end of the year.

The bank is expected to gain approximately £350 million from the deal with HSBC group chairman Stephen Green still based in London, where the bank will continue to be regulated.