HSBC 2001 Annual Report Download - page 35

HSBC HOLDINGS PLC
Description of Property
33
At 31 December 2001, HSBC had some 7,000
branches, representative and similar offices
worldwide, of which approximately 3,100 were
located in Europe, 400 in Hong Kong, 700 in North
America, 1,600 in Brazil and 250 in the rest of Latin
America. Additionally, properties with a net book
value of US$556 million were held for investment
purposes. Of the total net book value of HSBC
properties, more than 70 per cent were owned or held
under long-term leases. Further details are included
in Note 25 of the ‘Notes on the Financial
Statements’ .
HSBC values its properties on an annual basis
and updates their balance sheet values accordingly.
On 19 October 1998, HSBC Bank plc, a
subsidiary of HSBC Holdings, entered into an
agreement to lease a building being developed by
Canary Wharf Limited. The construction of the
building has been completed. This building, located
at Canary Wharf, London, will accommodate under
one roof approximately 8,500 staff from various
HSBC businesses and HSBC headquarters operations
located in London. The 999 year leasehold interest
will have a cost of around US$800 million including
funding costs. Further fit-out to be completed by
HSBC Bank plc will have a substantially fixed cost
of around US$420 million. In the run-up to and post-
completion and occupation of the new building,
HSBC will manage its leased and owned surplus
London city properties through assignment, leasing
or sale into the market, as appropriate.