3 February 2005
The Hongkong and Shanghai Banking Corporation Limited has entered into an agreement to sell HSBC Building in Singapore for S$152 million (equivalent to US$92.6 million) to CapitaCommercial Trust (CCT), a Singapore listed real estate investment trust. The sale price comprises S$147 million (US$89.6 million) for the building in Raffles Place and S$5 million (US$3 million) in respect of the cost of constructing a glass façade for the building.
Upon completion of the sale and purchase transaction, CCT has agreed to lease the building to HSBC in Singapore for seven years. Completion of the transaction is subject to certain conditions being met.
HSBC Building is a 21-storey office building with three basement levels with a net lettable area of 18,624 sq m (about 200,467 sq ft).
Paul Lawrence, chief executive officer of HSBC in Singapore, said: “This is part of the ongoing management of our assets. With the leaseback arrangement, it will provide us with a great deal more flexibility to review our operational space requirements going forward.”
The HSBC Group’s history in Singapore dates back to 1877 when its founding member, The Hongkong and Shanghai Banking Corporation Limited, opened its first branch.
Today, HSBC has a network of 10 branches incorporating four Premier centres and 27 automated teller machines in Singapore, including four at offsite locations.
HSBC in Singapore offers a comprehensive range of services including personal and commercial banking, investment and private banking, insurance, forfaiting and trustee services, leasing and securities and capital markets services.
