Somebody’s making money in real estate

HSBC sold their London headquarters to Spanish property developer Metrovacesa for more than 1.25 Billion euros last year. Metrovacesa paid 300 million euros in cash, and financed the remaining 950 million euros through a giant HSBC mortgage. A year later, Metrovacesa needed cash and was forced to sell. HSBC agreed to buy its headquarters back for 1 billion euros, cancel Metrovacesa’s loan for the purchase, and pay Metrovacesa 35 million euros in cash.

In a year and a half, HSBC is up some 265 million euros on the transaction, and owns its own headquarters again.

Algunos ganan en el sector inmobiliario – El Blog Salmon