Hong Kong Securities And Futures Commission’s Acquisition Of Permanent Office

The Securities and Futures Commission (SFC) has agreed to purchase office floors at One Island East (OIE) in Quarry Bay as its permanent office. 

The SFC signed the sale and purchase agreements today with Swire Properties Ltd. to acquire 12 floors of OIE for a sum of $5.4 billion to be completed over a course of five years.  The acquisition of the nine floors the SFC currently occupies will take effect from December 2023 while the acquisition of the three additional floors will be completed by 2028 (Notes 1 & 2).

"This acquisition is cost saving in the long run as the SFC invests in its own assets and eliminates rental expenses," said Ms Julia Leung, the SFC’s Chief Executive Officer.

"Becoming the owner of the leased office space would spare us the hassle of further office relocation, minimise disruption to our operation and in line with the best practice of an environmentally conscious organisation," Ms Leung added (Note 3).    

Notes:

1. The SFC has set aside $3.4 billion of its reserves specifically for purchase of permanent office premises.  The purchase will be funded by $2.7 billion of that amount and the rest by external borrowing.
2. The SFC currently occupies as a tenant levels 45 to 48 and levels 50 to 54 of OIE.  Under the sale and purchase agreements, acquisition of the three additional floors – levels 42 to 44 – will be completed between 2026 and 2028. 
3. The SFC underwent four office relocations since it was established in 1989.