EXCLUSIVE-Qatar's wealth fund shakes up London HSBC tower plans, sources say

By Iain Withers

LONDON, Nov 20 (Reuters) - Qatar’s sovereign wealth fund is revising plans for the revamp of its HSBC skyscraper in London’s Canary Wharf to retain more office space, prompted by a global rebound in demand as companies mandate a return to the office, two sources told Reuters.

The Qatar Investment Authority (QIA) is weighing keeping up to 80% of the 45-storey tower as offices after banking giant HSBC (HSBA.L) leaves in 2027, the sources with knowledge of the matter said. QIA had unveiled more radical plans last year to attract a range of alternative uses including leisure, entertainment, education and potentially a theatre.

Keeping more offices would likely significantly cut the cost of the project, although QIA’s changes were primarily motivated by shifting demand, the sources said. Keeping control of costs is a factor in the revisions, the second of the sources said.

The plans are not final and are subject to change, depending on prospective office client demands, the sources added.

Property veteran and former Canary Wharf Group chairman George Iacobescu has been hired as an adviser by QIA on its UK assets, including the HSBC tower and upgrading its sustainability credentials, the sources said. The revised plans for the HSBC skyscraper will broadly retain the exterior design outlined last July, they added.

QIA, which bought the HSBC tower for 1.1 billion pounds ($1.44 billion) in 2014, declined to comment. ($1 = 0.7659 pounds)