HSBC Holdings wants to buy headquarters in London

HSBC Holdings Plc (LON:HSBA) are in negotiation with Metrovacesa SA the Spanish developer to buy back its London headquarters as the £800 billon bridge loan on the property is due today according to a source close to the matter.

According to the source HSBC sold the 45-story tower building in Canary Wharf, the financial district of London to Metrovacesa’s in April last year for £1.09 billion, back then in the property boom it was recorded as the most expensive single property transaction, its thought that commercial property has lost around 32 percent in value since the transaction in April 2007.

It’s not known at this point how much is being offered by HSBC for the building according to the source.

HSBC sold its headquarters to take advantage of the rising property prices, the bank then agreed with Metrovacesa to lease the building back from them for a 20 year term, with an additional option to lease it back from them in 20 years, HSBC rent is £43.5 million each year.

Source: Bloomberg