HSBC Private Bank has sold its UK high net worth (HNW) property advisory unit, Property Vision, to the company’s management team as part of its group-wide strategy to sell off non-core assets.
The entire business will be bought by PV Acquisitions Limited, a company set up by its former management. Although Property Vision had gross assets of $7.2m on 30 June 2012, the terms of the deal have not yet been disclosed.
HSBC spokesperson Brendan McNamara declined to comment on the sale, but added Property Vision’s sale was "further progress toward HSBC group’s strategy to simplify the organisation, restructure and grow."
HSBC: 36 disposals since 2011
The property advisory unit, which specialised in finding UK property and providing advice on purchasing property to HNW private clients, was taken over by HSBC Private Bank in 2001.
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HSBC’s chief executive Stuart Gulliver outlined the strategy on non-core countries in May 2011, explaining he wanted to cut annual costs by $3.5bn by quitting countries or businesses where it lacked scale.
In July this year, Gulliver added, "We have announced 36 disposals since 2011, exiting non-strategic markets, and selling non-core businesses and investments".
Latest in global sell-off
In the past 11 months, HSBC Private Bank has sold its onshore private banking businesses in Japan, Colombia, Peru, Uruguay and Paraguay as well as selling part of its portfolio of client accounts in Monaco.
The global bank closed its private bank and wealth management division in Ireland and sold private banking and wealth management businesses in Thailand, Korea, Pakistan and Mauritius in July.