HSBCsells NYCoffice for $330m
HSBC yesterday agreed to sell its New York headquarters to Israel’s Koor Industries and Property and Building for $330m (£207m).
Koor and Property and Building are both subsidiaries of Israeli holding company IDB Holding, which said it would receive $45m in rental income in the first year while operating expenses will total $18.5m.
The bank will remain the main tenant in the 865,000 sq ft New York building for 10 years with an option to extend its lease.
HSBC, Europe’s biggest bank, has been mulling offers to sell its premises on New York’s Fifth Avenue, as well as its offices on the Champs Elysees in Paris and in London’s Canary Wharf since April this year.
The Docklands skyscraper and Champs-Elysees office complex are believed to have attracted offers of around $1.3bn and $500m respectively.
HSBCsold its iconic Canary Wharf skyscraper to Spanish real estate firm Metrovacesa for £1.1bn in 2007 before taking back possession last December after the property company failed to refinance bridging debt secured from HSBC.
HSBCbought back the skyscraper for £838m, netting it a quick profit of about £250m. But UK commercial property prices have slumped since then, threatening the bank’s chances to achieve a sale at a similar level.
HSBC looks set to raise as much as $2bn from the sale of all three sites.