Monday, April 30, 2007
Calling the top of UK commercial property?
"Spanish property company Metrovacesa is paying £1.09bn for the London headquarters of global bank HSBC in the biggest ever single-property deal in the UK. The skyscraper at 8 Canada Square in Canary Wharf, where 8,000 people work, is 210m high with 1.1m sq ft of space. On a yield of 3.8 per cent – thought to be the highest price paid for a big UK office block – the building reflects how commercial property prices have gone through the roof in recent years. " HSBC selling up? How badly do they need cash to cover bad-debt losses? Or, with Swiss Re having recently sold the Gherkin, are HSBC also calling the top of the market?