Buy back your building

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This puts HSBC in a slight predicement. The building is the headquarters they are working from, and the building was purchased from HSBC themselves. The problem comes that the money loaned to purchase the building, was taken out with HSBC as well.

The offer of £838million seems to be well above what the building is worth, but if the company sold to HSBC for any less, it would leave HSBC chasing them for the difference.

Buy back your building

Metrovacesa, the troubled Spanish property company that bought HSBC’s European headquarters at Canary Wharf less than two years ago, wants the bank to take it back.

As the downturn in the Spanish property sector worsens, Metrovacesa has failed to refinance debt secured on the building. Now it has decided to offer the 45-storey tower back to HSBC for £838 million – £150 million less than the record-breaking £1.09 billion that the Spanish company paid for it at the peak of the British property market in April last year.