Metrovacesa Try To Offload HSBC Headquarters

Metrovacesa Try To Offload HSBC Headquarters

Published on 01-07-2008 by Skyscrapernews.com
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.

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