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Cash management poll 2008:

Cash management poll 2008:

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Bank deleveraging has barely started

Bank deleveraging has barely started

Banks lending money to governments to help fund bank bailouts looks horribly circular

Friday, August 29, 2008

HSBC Shops Fifth Avenue Tower





HSBC wants to sell 452 Fifth Avenue, its 29-story headquarters at 40th Street. The firm has hired Jones Lang LaSalle, which is conducting tours for potential buyers. Bids are expected to be due in late September. A spokeswoman for HSBC said the decision to sell is part of a plan by the bank to lease its buildings rather than own them.

The sale includes 452 Fifth Avenue and a 150,000-square-foot building that is part of the same complex. The buildings total 900,000 square feet of office, retail and storage space and could be sold for upwards of more than $600 million. Officials at Jones Lang declined to discuss a potential price.

The move is also being seen as a sign that HSBC is full speed ahead on leasing space at 7 World Trade Center, which is owned by Silverstein Properties. Although HSBC has not yet signed, there is a lease out on the property, a Silverstein spokesman said. There is also speculation that HSBC may lease back some space at 452 Fifth Avenue. The HSBC spokeswoman declined to comment.

Dan Fasulo, a managing director at Real Capital Analytics, said that the building, which is seen as one of the premier buildings in the submarket, has the potential to set a record price for that stretch of Fifth Avenue between 34th and 42nd. It could be sold for about $800 to $900 per square foot.

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