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HSBC takes extra space in Canary Wharf due to HQ squeeze

LONDON: HSBC has signed a lease to take extra space in Canary Wharf before shifting its global headquarters away from the East London financial district, according to a company memo seen by Reuters, owing to a shortage of space at its planned new base in the central City of London area.

The banking giant has signed a contract to take a number of floors at 40 Bank Street, not far from the 45-floor skyscraper it currently occupies in Canary Wharf, the memo said.

HSBC is taking 210,000 square feet in the Bank Street building, said a source close to the matter.

The lender is moving its headquarters in London to a building roughly half the size near St Paul's Cathedral, but had realised it would lack sufficient space and had been assessing other options, Reuters previously reported.

Bloomberg had previously reported that HSBC was in discussions about leasing the space at 40 Bank Street.

HSBC's decision will provide a boost to Canary Wharf, which has seen the value of its offices decline since the COVID-19 pandemic and due to several planned departures including HSBC and law firm Clifford Chance.

Several companies have signed up for space in the district in recent months, as return-to-office mandates have contributed to a shortage of quality space, particularly in the central City of London.

Spanish bank BBVA has signed a lease to take 250,000 sq ft in Canary Wharf, landlord Canary Wharf Group said this week, while fintech Zopa is moving its headquarters to the district.