HSBC in US$330mil sale and leaseback deal on New York HQ

LONDON: HSBC Bank USA NA said Monday that it has agreed the sale and leaseback of its headquarters building in New York for $330 million in cash.

Under the agreement with 452 Fifth Owners LLC, HSBC agreed to lease the entire building at 452 Fifth Avenue for one year, and floors one to 11 for ten years.

The deal is expected to close in the first quarter of 2010.

HSBC Bank USA NA is a wholly owned subsidiary of HSBC Holdings plc.

HSBC had negotiated a similar deal, valued at 1.09 billion pounds ($1.7 billion), for the sale and leaseback of its global headquarters in London in 2007.

Because of market disruption, financial arrangements could not be completed for that deal.

The agreement was terminated in December and HSBC regained title to the building. - AP

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