HSBC tower could be sold for over $1.85 billion: FT

Fri Apr 25, 2014 5:00am EDT

A general view shows the HSBC building in the financial district of Canary Wharf in London March 24 2009. REUTERS/Kieran Doherty

A general view shows the HSBC building in the financial district of Canary Wharf in London March 24 2009.

Credit: Reuters/Kieran Doherty

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(Reuters) - London's largest and most expensive office building, HSBC Holding Plc's (HSBA.L) global headquarters, is up for sale and could fetch over 1.1 billion pounds ($1.85 billion), a record price for the British market, the Financial Times reported.

The Canary Wharf-based 44-storey, 1.1 million square foot building is being marketed by estate agents JLL and GM Real Estate, according to sources familiar with the matter, the FT said. (link.reuters.com/maq78v)

HSBC, GM Real Estate and JLL could not be reached for comment outside of regular business hours.

At the height of the British property boom in 2007, the HSBC tower became the most expensive building in London when it sold for 1.09 billion pounds.

The FT said HSBC had a 13-year lease on the building and is committed to annual upward-only inflation-linked rent reviews, citing sources familiar with the tenancy arrangements. This would make it an attractive proposition for investors seeking a hedge against inflation.

($1 = 0.5953 British Pounds)

(Reporting by Richa Naidu in Bangalore; Editing by Bernard Orr and Lisa Shumaker)

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