HSBC Enters $573 Million Sale Leaseback of Paris Office Buildings

Reuters - December 21, 2009

Europe's largest bank, has sold its Paris offices for 400 million euros ($573 million) to private investors represented by French Properties Management, completing the sale of three properties worldwide.

HSBC France, a HSBC Holdings unit, has agreed to lease the buildings at 103 avenue des Champs-Elysees and 15 rue Vernet for nine years, with break clauses in the fourth, fifth and sixth years, the bank said in a statement on Monday.

Over the past two months, HSBC has sold its European headquarters at London's Canary Wharf to South Korea's National Pension Service for $1.3 billion, and its New York City building to Isreal's IDB Holding Corp (IDBH.TA: Quote, Profile, Research) for $330 million.

HSBC said the Paris agreement would be completed in the first quarter of 2010, subject to conditions, with a subsidiary of a French OPCI (Organisme de Placement Collectif Immobilier) established for the transaction.

The deal was conditional on the City of Paris not exercising its right of pre-emption to buy the buildings in the two-month period immediately after the agreement, HSBC said. Sphere: Related Content