HSBC agrees sale of 8 Canada Square

HSBC Bank plc, a wholly owned subsidiary of HSBC Holdings plc, has agreed the sale of 8 Canada Square, Canary Wharf, London to the National Pension Service of Korea ('NPS') for £772.5 million in cash. As a result of the transaction, a gain of approximately £350 million will be recognised in HSBC's income statement on completion, expected to be before 31 December 2009.

NPS, through a wholly-owned subsidiary, NPS 8CS Holdings Sarl, will purchase HSBC's 100 per cent shareholding in Project Maple II B.V., the sole asset of which is the 998-year leasehold interest in 8 Canada Square. Under the terms of the agreement, HSBC will retain full control of occupancy for the remaining 17.5 years of the existing 20 year leaseback period at a current rent of £46 million per annum.

Ken Harvey, HSBC's Chief Technology and Services Officer, said: "We actively manage our global real estate portfolio in accordance with the needs of our businesses and in the interests of our shareholders, and we are delighted the National Pension Service of Korea, one of Asia's largest sovereign investors, will be our new landlord."

HSBC originally entered into a sale and leaseback of 8 Canada Square in May 2007 for £1.09 billion. In December 2008, HSBC took back ownership of the building for £838 million, resulting in a gain of approximately £250 million.

source : HSBC