HSBC purchases new headquarters in the heart of London

MarketWatch news agency has reported today that HSBC Holdings announced the coming purchase of its London headquarters from Spanish property group Metrovacesa which it has sold about 1,5 years ago. The expected contract value will be 250 million pounds ($367 million). It is necessary to say that the price will be less that the one received for the building around 18 months ago.

Also the bank has announced that it will pay 838 million pounds for 8 Canada Square, the second tallest building in the U.K. It had previously sold the offices in London's Canary Wharf business district for 1.09 billion pounds in May 2007 and agreed to lease them back at an annual rate of 43.5 million pounds a year. 

HSBC said it will book the roughly 250 million pound price difference as a one-off gain in the second half of 2008. 

To help fund the original purchase, Metrovacesa obtained an 810 million pound bridging loan from HSBC subject to syndication into a term facility. 

"As a result of the significant market disruption that has impacted the availability of term funding, syndication of the bridging loan has not been possible and the parties have come to an agreement that the building will be handed back to HSBC," the bank said in a statement. 

"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," added Chief Operating Officer David Hodgkinson. 

Metrovacesa said Thursday that it had reached a deal with its main creditor banks to reduce its debt in return for a majority stake in the group.