"We are delighted to have reached agreement with HSBC on this landmark deal," says Metrovacesa principal Jesus Garcia de Ponga, calling the transaction "evidence of our commitment to establish a significant presence in major cities such as London" on a crusade to become a leading international real estate investor. HSBC has leased the building for 20 years at an annual rate of $43.5 million British pounds ($87 million), and has an option to extend the occupancy an additional five years. The commitment should underscore HSBC's belief in London as a global financial center, says COO David Hodgkinson, who calls the city "one of the great crossroads."

"There is no better place for HSBC, the world's local bank, to be headquartered," he says. The sale of the tower to Metrovacesa will allow HSBC to manage its assets more effectively, Hodgkinson explains, and is not a signal of wanderlust for a financial services institution already operating in 82 countries and territories.

Standing 688 feet high, 8 Canada Square has been HSBC's home since 2002 after the financial services operation established its headquarters in London in the early 1990s. Constructed at a cost of $500 million British pounds ($1 billion), the property not only has such amenities as dining rooms, a full-floor fitness facility, medical center and retail, it is also well-known for superior energy efficiency and practices. The tower last year secured the highest rating possible by the Building Research Establishment, the United Kingdom's leading environmental standards authority. It was the first project to receive such a lofty designation, notes the new ownership.

"The iconic status of the building and its 'best-in-class' environmental credentials made this a compelling investment opportunity," says Garcia de Ponga.

The sale of 8 Canada Square was orchestrated by CB Richard Ellis and Freshfields for HSBC, while Metrovacesa was represented by Colliers International in Spain, Colliers CRE and Clifford Chance.

Instant Insights /

8 Canada Square Trades for Record $2.2B

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