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HSBC in $330M Sale-Leaseback of US HQ

NEW YORK CITY-The bank will lease 11 floors of its US headquarters at 452 Fifth Ave.; its London and Paris towers are also on the block.

By Paul Bubny | Updated on October 05, 2009

NEW YORK CITY-HSBC Holdings’ New York headquarters at 452 Fifth Ave. traded this weekend for $330 million in an all-cash sale-leaseback, the London-based bank announced Sunday. HSBC said it had exchanged contracts on the deal, which is expected to close in the first quarter of next year.

Buyer for the 865,000-square-foot office tower was 452 Fifth Owners LLC, a special-purpose vehicle held equally by Property and Building Corporation Ltd. and Koor Industries Ltd. The two companies are controlled by Tel Aviv-based IDB Group. The SPV’s local partner is Joe Cayre, chairman of Midtown Equities, who says in a statement that he looks forward to doing more deals with IDB.

Under the terms of the agreement, HSBC Bank USA is leasing the entire building for one year, and floors one through 11 for 10 years, the company says in a release. The headquarters of HSBC Bank USA will remain in New York.

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