The Hong Kong Monetary Authority oversees Hong Kong’s monetary system. It was founded in 1993 when the Office of the Exchange Fund merged with the Office of the Commissioner of Banking. Its responsibilities include maintaining currency stability, monitoring Hong Kong’s banking system and managing the Exchange Fund.
HKMA in London property project
The Hong Kong Monetary Authority has entered into a 50-50 joint venture with British-based Great Portland Estates to develop the Hanover Square Estate project in Mayfair, London.
The London-based real estate investment trust said it sold the site for £202 million (HK$2.5 billion) to the venture. The site will be developed as a mixed-used project of office, residential and retail spaces.
A spokesman for the HKMA said yesterday the regulator would pay £101 million for a 50 per cent stake of the site.
"We believe the partnership will create long-term value, which is in line with our real estate investment objective," the HKMA said in a statement last night. "London has proven to be a strong, liquid real estate market with robust demand for grade A office and retail assets over different market cycles."
It said the project, with its prime location and growth potential, met its investment criteria.
Hanover Square Estate was a long-term investment, so its success should be measured over the medium to long term - 10 years or longer - the HKMA said.
Great Portland was granted permission in 2011 for a 208,000 square foot redevelopment project incorporating a new Crossrail station. Once completed, it will provide 163,500 sqft of grade A office space across three buildings, 32,700 sqft of prime retail and restaurant space predominantly fronting New Bond Street and six residential units.
The HKMA's investment came on the heels of a string of Asian and Chinese investments in London. In July, Ping An Insurance paid £260 million for the Lloyd's Building.