Foster’s London Skyscraper Sold in £1bn Lease-Back Deal

1 May 2007 (Last Updated May 1st, 2007 05:50)

Sir Norman Foster's first London skyscraper has been sold in a record lease-back deal. HSBC sealed the UK's biggest commercial property deal yesterday by selling its London headquarters for £1.1bn to Spanish property group Metrovacesa. The bank also sealed an agreement to lea

Sir Norman Foster's first London skyscraper has been sold in a record lease-back deal.

HSBC sealed the UK's biggest commercial property deal yesterday by selling its London headquarters for £1.1bn to Spanish property group Metrovacesa.

The bank also sealed an agreement to lease back the Docklands tower block for the next 20 years at an annual rent of £43.5m – giving the Spanish investors an initial yield of just 4% on their investment.

HSBC spent £500m building the skyscraper at the turn of the millennium. The bank moved into the building in 2002, and now has some 8,000 staff working in the skyscraper.

There has been a flurry of large commercial property deals in London this year – Evans Randall bought Norman Foster's Swiss Re's building, aka the 'Gherkin' for £630m earlier this year.