Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), is reconsidering its plans for a significant revamp of the HSBC skyscraper located in London’s Canary Wharf. The revision is driven by a resurgence in global demand for office space, as more companies mandate a return to in-person work. Sources familiar with the matter indicate that QIA is now considering retaining up to 80% of the 45-storey tower as office space after HSBC vacates the premises in 2027. QIA is a sovereign wealth fund that invests globally on behalf of the State of Qatar. It aims to generate sustainable returns and diversify Qatar’s economy.
Previously, QIA, which acquired the HSBC tower in 2014 for £1.1 billion, had outlined more extensive plans to diversify the tower’s use, potentially incorporating leisure, entertainment, education facilities, and even a theatre. The current shift towards retaining office space is influenced primarily by changing demand, although it could also lead to a reduction in project costs. Property veteran George Iacobescu, formerly of Canary Wharf Group, has been engaged as an advisor to QIA on its UK assets, including upgrades to the HSBC tower’s sustainability credentials.
The revised plans for the HSBC skyscraper are expected to maintain the exterior design previously outlined in July. This overhaul is closely monitored by the property industry, seeking innovative methods to revitalise older office buildings. The changes being considered by QIA reflect how a recovery in office demand has altered the landscape. Canary Wharf Group manages the broader financial district and is jointly owned by QIA and Brookfield.
The district faced challenges during the pandemic due to reduced office occupancy. However, the return of companies has led to increased leasing activity, particularly as firms seek more affordable options compared to central London. Vacancy rates in the Docklands area, which includes Canary Wharf, have decreased to 15%, down from a high of 18.6% post-pandemic, although still exceeding London’s overall rate of 10.4%.
