HSBC claims that the sale and leaseback of its head office building in Canary Wharf is the largest single property deal in history.

The bank has agreed the sale and leaseback of its head office building in Canary Wharf, London, for £1.09bn to real estate company Metrovacesa. HSBC has exchanged contracts on the deal which sees the bank retain full control of occupancy, while Metrovacesa takes a 998-year lease. HSBC has leased the building back for 20 years at an annual rent of £43.5m with an option to extend for a further five years.

David Hodgkinson, group chief operating officer of HSBC Holdings, said: “This is a good opportunity for HSBC to manage its property assets effectively and we’re pleased to do so with the assistance of Metrovacesa.”

HSBC is among many banks to have sold off their property. Merrill Lynch and Goldman Sachs have just sold their London headquarters, while Barclays has recently sold hundreds of branches. Last year, HSBC sold £200m of property, including 77 UK branches, and it is understood that it will sell a further 100 high street branches in Britain this year.