HSBCsells NYCoffice for $330m

HSBC yesterday agreed to sell its New York headquarters to Israel&rsquo;s Koor Industries and Property and Building for $330m (&pound;207m).<br /><br />Koor and Property and Building are both subsidiaries of Israeli holding company IDB Holding, which said it would receive $45m in rental income in the first year while operating expenses will total $18.5m.<br /><br />The bank will remain the main tenant in the 865,000 sq ft New York building for 10 years with an option to extend its lease.<br /><br />HSBC, Europe&rsquo;s biggest bank, has been mulling offers to sell its premises on New York&rsquo;s Fifth Avenue, as well as its offices on the Champs Elysees in Paris and in London&rsquo;s Canary Wharf since April this year.<br /><br />The Docklands skyscraper and Champs-Elysees office complex are believed to have attracted offers of around $1.3bn and $500m respectively.<br /><br />HSBCsold its iconic Canary Wharf skyscraper to Spanish real estate firm Metrovacesa for &pound;1.1bn&nbsp; in 2007 before taking back possession last December after the property company failed to refinance bridging debt secured from HSBC.<br /><br />HSBCbought back the skyscraper for &pound;838m, netting it a quick profit of about &pound;250m. But UK commercial property prices have slumped since then, threatening the bank&rsquo;s chances to achieve a sale at a similar level.<br /><br />HSBC looks set to raise as much as $2bn from the sale of all three sites.