HSBC sells 8 Canada Square to the National Pension Service of Korea.

HSBC has agreed to the sale of its Canary Wharf group headquarters, 8 Canada Square, for a cash sum of £772.5 million.

The National Pension Service of Korea (NPS), through a wholly-owned subsidiary, NPS 8CS Holdings Sarl, has been named as the buyer, and will own 100% of the shareholding, along with a 998-year leasehold.

The building is home to 8,000 HSBC staff and has been HSBC’s International headquarters since 2002, and is the joint second tallest structure in the UK. The Citigroup Centre shares the accolade.  

According to a statement released by the bank, it will continue to occupy the building for the remaining 17.5 years of the existing 20 year leaseback period, paying a rent of £46m per year.

Ken Harvey, HSBC’s Chief Technology and Services Officer, explained the reasons behind the sale: “We actively manage our global real estate portfolio in accordance with the needs of our businesses and in the interests of our shareholders, and we are delighted the National Pension Service of Korea, one of Asia’s largest sovereign investors, will be our new landlord.”

The sale is expected to complete by 31 December 2009.

This is not the first time HSBC has sold the building and continued occupation through a lease.

In May 2007 Spanish property company Metrovacesa bought the tower for a record sum of £1 billion. However, HSBC regained ownership in December 2008, buying back the building for £838m, posting a profit of £250m.