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Tue 28 Oct 2014 11:11 AM

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Qatar fund set to buy Canary Wharf tower for $1.7bn

HSBC’s global HQ sale would be one of the largest property deals in London

Qatar fund set to buy Canary Wharf tower for $1.7bn

Qatar’s sovereign wealth fund is believed to have moved ahead of Chinese bidders to buy HSBC’s global headquarters in London’s Canary Wharf for $1.7 billion.

In what would be one of the biggest property deals in the UK, Qatar Investment Authority has reportedly agreed to buy London’s biggest and most expensive office building, a 656 foot tower with 45 storeys in the heart of the city’s docklands area.

The building was put on the market in April this year by Korea’s National Pension Service (NPS), who are looking to cash in on London’s booming property market.

The property has changed hands a number of times since it was officially opening in 2003. Spanish property firm Metrovacesa bought the building for £1.09 billion ($1.75 billion) in 2006. HSBC bought the building back in 2008 at a lower price, after the Spanish firm got into financial difficulties. The building was again sold in 2009 to Korea’s NPS for £772.5 million.

HSBC has a 13-year lease on the building, with a commitment to upward-only, inflation-linked rent reviews.

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