HSBC looking to cash in property assets
Last year's repurchase of its Canary Wharf headquarters saw HSBC bank profits of around £300 million after originally selling the property for £1.1 billion in a leaseback agreement in 2007. It is rumoured that HSBC is looking at selling a portfolio of property assets held by the group with the intention of raising around £2.5 billion to assist with the funding of the business. The bulk of the transactions are likely to be sale and leaseback agreements which would effectively allow the business to operate as normal while leasing as oppose owning the properties.
HSBC, along with Barclays bank, is one of the few UK banking operations to escape the grasp of the UK authorities so far. However, the sale of prime property assets at the bottom of the market is causing concern among some analysts who are worried about the capital ratios of the business. This comes just days after a £12.5 billion rights issue was approved and accepted by shareholders, potentially taking funds raised to the £15 billion level.
Quite why the directors of HSBC are so desperate to raise such large amounts of money is also causing some concern amongst investors but hopefully answers will be forthcoming in the short term.
Share this..
Related stories
Credit Suisse announces 75 job cuts in London
Financial giant Credit Suisse has announced 75 job losses centred upon the company's London operations as the economic downturn in the UK begins to impact upon the investment banking market. This comes only hours after Barclays Capital announced significant job cuts across the board in a move which many believe is the sector adjusting for what could be a turbulent next few years. It would appea...
Read MoreMore undersold homes join the rental market
As the glut of unsold homes across the UK continues to increase we are seeing more and more properties placed into the rental market until such time as they can be sold. This massive increase in properties available for rent has resulted in great pressure on rental yields and pushed rental income lower and lower. This has the potential to become a serious problem for many buy to let owners as they...
Read MoreWhat will Gordon Brown say at the World Economic Forum?
When Gordon Brown left for the World Economic Forum earlier this week he appeared upbeat and positive for the future. However, a damning attack by the International Monetary Fund earlier this week has blown apart his reputation for prudence and economic prowess. The suggestion that the UK economy is the weakest in the developed world and will be among the last to recover when the world economy imp...
Read MoreGordon Brown promises public-sector investment again
Again, Gordon Brown has attempted to pull a rabbit out of the hat in the shape of public-sector investment at a time when there is no doubt that the UK budget cannot withstand such promises. In direct contradiction to the Minister for education, Gordon Brown has suggested that investment into the UK education system will continue despite only a couple of weeks ago the party admitting that up to £...
Read MoreIs the UK on the brink of bankruptcy?
As the UK national debt approaches £1 trillion many experts in the field of economics are asking the question "Is the UK on the verge of bankruptcy?"
While this seems a very bizarre question for a country as "strong" as the UK there are serious concerns that debt could reach £2 trillion or even £3 trillion if the latest rescue package goes disastrously wrong. In effect Gordon Bro...