Sunday, March 25, 2007

HSBC Gets 15 Bids for Canary Wharf HQ

The Times Online - March 24, 2007

HSBC has received 15 bids for its £1 billion Canary Wharf headquarters in a sale that could complete as early as next month.

Indicative offers for the building are understood to have come from firms including Evans Randall, the Mayfair-based boutique investment bank, IVG Immobilien of Germany, the new part-owners of the £600 million Swiss Re building, Active Asset Investment Management, the property fund managers backed by Sir Alex Ferguson and HBOS, as well as a number of billionaire Gulf investors and Far East property moguls.

The buyer will have to lease the building back to HSBC, which insists it will keep its global headquarters in Canary Wharf, in return for £43 million annual rent. The asking price of £1 billion covers 1.1 million sq ft of office space spread over 42 floors and four “basement levels” in what would be the largest single office sale in Britain.

Based on the rental income a £1 billion sales tag would mean the building offering a yield of just 4.25 per cent. The Swiss Re Tower, the most expensive single office block sale, was sold this year on a yield of 4.5 per cent.

Other potential bidders include Three Delta, the company owned by Qatar’s Foreign Minister, the Abu Dhabi royal family and the real estate arm of Dutch insurer ING.

A final shortlist of six bidders is due in six weeks. The building is to go under offer at the end of next month. Sphere: Related Content

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