HSBC's takeover of the Bank of Bermuda is a lock, stock and barrel deal including the group's significant holding of Bermuda property.

Chief operations officer Philip Butterfield yesterday told The Royal Gazette that once the deal was closed, HSBC would hold all the bank's property deeds.

The bank is a large landowner with eight branches - including the flagship headquarters on Front Street - and administration buildings. In total the bank owns 251,000 square feet and lease a further 8,200 square feet of space.

Mr. Butterfield said HSBC would not be constrained by restrictions put on foreign corporation's ownership of Bermuda property as the bank's license would remain the same. "As the acquirers of 100 percent of the shares of the Bank of Bermuda they have full title to the land and buildings that we currently own and that does not require any exemption from Government."

Although Mr. Butterfield said the bank's license would remain the same, he added that there was still an application process and prudential review to be done with the Bermuda Monetary Authority.

The sale will also mean HSBC acquires other land holdings currently the property of the bank including office space in the Cayman Islands, Guernsey and in the Cook Islands for an additional total of some 48,200 square feet of space.