So much so, that it’s selling its headquarters and just about every piece of real-estate it owns.
First to go was its New York headquarters on Fifth Avenue, sold last month to an Israeli. Now, HSBC is parting ways (again) with its London headquarters in Canary Wharf, agreeing to sell to South Korea’s National Pension Service.
The bank is still shopping its Hong Kong and Paris buildings.
Of course, real-estate speculation has been good business for HSBC in recent years. The bank had to good fortune (yea, good fortune) to sell its Docklands headquarters in June 2007 to a Spanish developer, Metrovacesa. As you may have heard, that was not a particularly good time to need access to the credit markets, and Metrovacesa couldn’t. So HSBC got the building back, earning itself a tidy £250 million in the process.
Today’s deal is not quite as good for HSBC. The bank is getting £772.5 million for the building, which it will continue to occupy. It paid £838 million for it in December. But HSBC will book another £350 million this year on the sale, helping to salve that US$3.5 billion hit it took on its own debt in the third quarter.
Korea Pension Fund to Buy HSBC Headquarters for $1.29 Billion [Bloomberg]
“real estate speculation” – anyone notice it’s only “speculation” in hindsight, and then only when it doesn’t work out?
Every investment is “speculation”, be it a CDS or a single share of Microsoft, be it the long or the short side. The pejorative is only used by populists to describe things they want to regulate.
As you may have heard, that was not a particularly good time to need access to the credit markets, and Metrovacesa couldn’t.
As you may have heard, Greg was hated for writing shit like this. Focus, Shazar.
‘…had to good fortune’?
-Confused on the web
Yeah, but where is the “For Sale” sign?
Following up on an unrelated post from last week, the IR person for Handbridge Capital should be Honey Dejour….
Hey Jon, not sure you got all the facts. HSBC currently has lowest CDS levels of any bank out there (including JPM). Think it may be a question of willing buyers as opposed to distressed seller. Also, HSBC took no government money as opposed to a few others, one of which can’t find a new CEO.
Love, Vikram
Is it me, or can you actually see through Margaret Brennan’s shirt on Bloomberg TV this am? It’s not just cleavage this time …
Jon,
Thank you for applying for HSBC Global Banking and Markets. Despite your impressive credentials, unfortunately you do not match our needs at this time. We wish you all the best in your future endeavours,
Regards,
Human Resources,
HSBC Global Banking and Markets
Is it me, or can you actually see through Margaret Brennan’s shirt on Bloomberg TV this am? It’s not just cleavage this time …
@9 why don’t you send bess a screenshot and we’ll all be the judge
Human Resources poster,
HSBC Global Banking and Markets
I want to thank you for spelling out the name of Global Banking and Markets in full. Please continue to comply with the firm’s policy in this regard.
Department for Preventing the Use of Acronyms and Enforcing the Spelling Out of All Words
HSBC Bank
p.s. Don’t refer to us as DPUAESOAW.
AB@11 In that case, can we please refer to the company as the “Hong Kong and Shanghai Banking Corporation” rather than that silly “HSBC” acronym, designed to hide its origins as an imperialist tool.
Greg – is that you??