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.