HSBC Holdings Plc is reportedly in talks with Spanish developers Metrovacesa SA over a huge office space deal to buy back the banking giant’s London headquarters.
The Spanish developer’s £800m loan on the prime Canary Wharf office space is due today, after the 45 storey tower was sold for £1.09bn in April 2007, a record office space transaction in London at the time.
A spokesman for HSBC, Brendon McNamara said “The deadline for refinancing the bridge loan is nearly up and HSBC is evaluating its options.”
Commercial property and office space in Central London has fallen in value by almost a third since Metrovacesa purchased the bank’s head office 2 years ago. This is undoubtedly contributing to Metrovacesa’s lenders’ reluctance to provide additional funding for the office space.
Ursula Guerra speaking on behalf of Metrovacesa, said the company remains in negotiations with the bank. Metrovacesa’s director’s are reportedly meeting at 5pm today to discuss the future of the HSBC office tower. Madrid-based Guerra represents the Sanahuja family who own an 80% share in Metrovacesa, she confirmed that the meeting is scheduled to take place, but refused to comment on whether the HSBC office space would be up for discussion.
Tags: HSBC, Metrovacesa