Hang Seng puts up new mainland headquarters

Hang Seng Bank China has agreed to purchase about 7,000 square metres of office and retail space in Shanghai's financial district for a total consideration of US$74.6 million. The deal involved the naming and signage rights for the building.

Hang Seng China will use the new premises as its headquarters.

Following the purchase, which is still subject to the relevant regulatory approvals, Hang Seng China will own floors 34, 35 and 36 of HSBC Tower as well as a shop unit at ground level.

The vendor of the Property, HSBC China, is a wholly owned subsidiary of HSBC, the controlling shareholder of Hang Seng Bank. The deal is considered a connected transaction under Hong Kong's Listing Rules.

Hang Seng China's final offer price was made after taking into account various business considerations as well as the professional valuation and opinion of independent third-party valuer Jones Lang LaSalle. Other factors included a competing potential purchaser, the supply of Class-A office space as well as naming and signage rights for a building in Lujiazui, and the future needs of Hang Seng China’s operations on the Mainland.

"This property purchase reinforces our long-term commitment to the Mainland market and will support the continued development of Hang Seng China’s business. With the Central Government further promoting Shanghai as an international financial centre, we are delighted to have identified a well-located base for Hang Seng China’s headquarters in the Lujiazui financial district," said Mrs Margaret Leung, Vice-Chairman and Chief Executive of Hang Seng Bank.

"Our acquisition of naming and signage rights for the building will greatly support our brand-building efforts on the Mainland," she added.

Conditional upon obtaining the necessary government and regulatory approvals, the deal is scheduled to be completed by November this year.