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The Qatar Investment Authority is adjusting its plans for the HSBC tower in London's Canary Wharf to retain more office space in response to rising global office demand. The fund may preserve up to 80% of the 45-storey building as offices, potentially abandoning earlier ideas for a hotel and alternative uses. George Iacobescu has been appointed to advise on sustainability and UK assets. Leasing activity in Canary Wharf is improving post-pandemic, with the area's vacancy rate declining, while financing arrangements with Apollo have secured bond repayments
Qatar's sovereign wealth fund is revising its redevelopment plans for the HSBC skyscraper in London's Canary Wharf, aiming to retain a larger portion of office space amid a global rebound in office demand, according to sources familiar with the matter. The Qatar Investment Authority (QIA) is reportedly considering keeping up to 80% of the 45-storey building as offices after HSBC vacates in 2027. Advertisement
QIA, which acquired the tower for 1.1 billion pounds (USD 1.4 billion) in 2014, had previously proposed a more radical transformation, including alternative uses such as leisure, entertainment, education, and even a theatre. The shift toward retaining office space is partly driven by evolving demand and also helps control costs, the sources added. Final plans may still change depending on the requirements of potential office tenants.
Former Canary Wharf Group chairman George Iacobescu has been brought on board as an adviser to QIA for its UK assets, including the HSBC tower, with a focus on sustainability upgrades. The tower's exterior design is expected to remain largely as outlined last July. QIA declined to comment on the plans, and Canary Wharf Group, co-owned by QIA and Canada's Brookfield, was not immediately available for comment.
The HSBC tower's overhaul is being closely monitored across the property sector as a potential model for upgrading older skyscrapers. While Canary Wharf suffered a pandemic-related decline in office demand, leasing has improved as companies return, though there is less interest in single-tenant buildings like HSBC's. Nearby towers occupied by Citi, Barclays, and Morgan Stanley are also undergoing upgrades to meet modern workplace expectations.
The wider Docklands area, including Canary Wharf, has seen its office vacancy rate fall to 15% from a post-pandemic high of 18.6% in March, according to CoStar, though it remains above London's overall rate of 10.4%. Companies such as Spain's BBVA and the UK's Serious Fraud Office have recently leased office space in Canary Wharf, and HSBC itself has expanded its presence there after facing space constraints at its smaller planned HQ in the City of London.
Last December, QIA arranged a financing deal with U.S. investment group Apollo to borrow 610 million pounds, helping repay bonds due over two years, which raised funding costs but removed near-term refinancing risks.
Initial plans to reduce office space significantly may now be scaled back. The previously proposed up-to-80-room hotel could be dropped, retaining more conventional office space. Temporary serviced-office arrangements are also likely to be scrapped, while higher-level terraces may need to be enclosed due to the UK's weather. The overall redevelopment cost is expected to run into hundreds of millions of pounds, though sources suggest it will be lower than Citi's USD 1.5 billion Canary Wharf tower upgrade.
Source Reuters
5th Jun, 2025
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