The Azeri oil fund bought this building in 2012 for a 4.5% yield.
HSBC like most banks is under margin pressure so the UK Private Bank is moving elsewhere and Asset Management going to Canary Wharf.
They were apparently paying £81/ sq ft/ yr. Although the rent previously had been as high as £120 I believe, but got negotiated lower after 2008.
Assuming the owner finds another tenant is £70/ sq ft an unreasonable expectation? At that rent and a 6.5% yield its only worth £128m. At £60 its worth £110m. At £60 and an 8% yield its only worth £89m.
It was bought for £177m. If rents start to structurally fall the cap rates will plunge at current valuations.