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Metrovacesa Try To Offload HSBC Headquarters

Having purchased HSBCs headquarters in Canary Wharf last year for a record sum, Spanish property company Metrovacesa are now suffering the effects of the credit crunch.

With the 810 million of short term debt they took on from HSBC as part of the deal, there is a need for this to be resolved for something more permanent before the loan finishes in November meaning that they need a solution sooner than later.

Metrovacesa has struggled to raise longer term capital they can transfer the debt to, or alternatively selling the building at 8-16 Canada Square on to a new owner, raising the spectre that HSBC could end up repossessing the building that is their own headquarters if a deal cannot be thrashed out - a rather embarrassing and unique situation for all parties.

Although Metrovacesa have been trying to find someone to take on the financing or the buy the building off them including a number of sovereign wealth funds who could take over the building valued at 1.1 billion when they bought it but later reduced in value to 1 billion on Metrovacesa's own accounts giving them a near instant loss of 100 million even before the current problems hit.

Any deal with a knight in shining armour would see the new owner of the building get a guaranteed 43.5 million of income for the next 18 years with HSBC having the option of occupying the skyscraper for a further five past that.

Article Related buildings:

HSBC World Headquarters

HSBC World Headquarters
HSBC Tower Canary Wharf
HSBC Tower Canary Wharf