HSBC puts Chennai Rajaji Salai building on the block

NARAYANAN V Chennai | Updated on August 20, 2020

The iconic building of HSBC at Rajaji Salai in Chennai   -  BusinessLine

The bank recently put its Horniman Circle commercial building in South Mumbai up for sale

Global banking major Hongkong Shanghai Banking Corporation (HSBC) has put its iconic independent commercial building at Rajaji Salai in Chennai on the block.

The development comes just days after it put up its three-storey, neoclassical art deco independent commercial building at Fort’s Horniman circle in South Mumbai for sale.

Commercial real estate service provider CBRE had put out a newspaper advertisement for the sale of a prime property in Parrys, Chennai, owned by a multi-national bank for sale without mentioning the name of the seller. But sources privy to the development confirmed to BusinessLine that the property for sale is indeed HSBC’s iconic Rajaji Salai building.

Built in the English Renaissance-style, the four-storey building, earlier known as the Mercantile Bank building, is a classic example of colonial bank architecture of the early 1920s. The erstwhile Chartered Mercantile Bank of India, which began in Madras in 1854, was renamed as Mercantile Bank of India in 1893 and had moved into the current building on Firstline beach road (now Rajaji Salai) in 1923. In 1959, HSBC bought the Mercantile Bank but still retains the old facade.

Built-up area

The CBRE advertisement said the standalone commercial building has a super built-up area of 41,340 square feet with a land area of 15,441 sq.ft., and the building is ready-to-move-in with fit outs. “The plan is to conclude the sale transaction before the end of this financial year, and the property is expected to fetch more than ₹25 crore,” said the source cited above. Besides Rajaji Salai, HSBC also has a multi-storey building on Cathedral Road and a Global Service Centre in Perungudi.

HSBC declined to comment on this story. A message sent to CBRE South Asia spokesperson did not receive any response till the time of filing this story. The commercial real estate service provider is the transaction advisor for the Mumbai property as well.

Prior to this, in 2015, HSBC had sold its land parcel, spread over 1.4 acres next to Doordarshan Tower in Mumbai’s Worli locality, to K Raheja Corp for ₹230 crore. In 2011, HSBC sold Bishopsgate, a five-storey residential building in upscale Breach Candy to Ashok Piramal Group-owned Peninsula Land, for ₹272 crore. Bishopsgate was co-owned by Standard Chartered.

Published on August 20, 2020

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