HSBC 2002 Annual Report Download - page 36

HSBC HOLDINGS PLC
Description of Property
34
At 31 December 2002, HSBC had some 7,600
operational properties worldwide, of which
approximately 3,100 were located in Europe, 600 in
Hong Kong and the Asia Pacific region, 2,000 in
North America (including 1,370 in Mexico) and
1,600 in Brazil. Additionally, properties with a net
book value of US$525 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 acquire a long leasehold interest in a
building at Canary Wharf, London, to be developed
by Canary Wharf Limited. The building was
substantially completed, and occupation commenced
in the third quarter 2002. The final transfer of
operations was completed in February 2003. The
new building accommodates under one roof
approximately 8,000 staff, who previously occupied
various HSBC offices in the City of London. The
disposal of surplus property interests released by this
consolidation move has been managed in 2002, and
will continue to be managed in 2003, through
assignment, leasing or sale into the market, as
appropriate.