GO
Loading...

Enter multiple symbols separated by commas

HSBC Buys Back Headquarters at a Profit

HSBC said Friday it has bought back its London headquarters from Spanish real estate company Metrovacesa in an 838 million pounds ($1.2 billion) deal.

HSBC
AP
HSBC

HSBC said the deal would add about 250 million pounds to its income in the second half of this year.

In May of last year, HSBC had agreed to sell the 210-meter (689-foot) tower at 8 Canada Square to Metrovacesa for 1.09 billion pounds, the biggest property deal in British history.

Metrovacesa, which was forced to undo the deal because of difficult financial circumstances, said the sale of the building back to HSBC would have a negative impact of euro97.9 million ($124.8 million) on its earnings because of shifts in exchange rates and a decrease in the building's value.

HSBC Holdings shares were down 0.07 percent at 710 pence on the London Stock Exchange.

"Clearly the market has deteriorated significantly since we agreed the sale in spring 2007," said David Hodgkinson, group chief operating officer of HSBC.

"It was important to work with our client, Metrovacesa, to resolve the funding issue which had arisen. 8 Canada Square is a landmark building and this transaction is in the best interests of both parties and HSBC shareholders," Hodgkinson said.

Banks

  • Management shakeup: Catalyst for investment?

    Philippe Bodereau, MD & global head of financial research at Pimco, reveals whether earnings and new management roles have made him more bullish on European banks.

  • This is the top credit risk for Asian banks

    Eugene Tarzimanov, VP and senior credit officer at Moody's Investors Service, explains why the unwinding of asset bubbles is the biggest risk for Asian banks in the months ahead, followed by China's slowdown.

  • Fred Hochberg and Penny Pritzker

    The Commerce Secretary and head of the Export-Important Bank urge Congress to put U.S. businesses first and reauthorize the bank.