Hong Kong’s soon-to-open art-storage facility is another draw for family offices
Baku, April 9, AZERTAC
An art-storage facility at the Hong Kong International Airport should be ready later this year or early next year at the latest, South China Morning Star reports citing Jason Fong, global head of family office at InvestHK.
The facility is the last of the eight measures unveiled more than two years ago to be implemented by the government, forming a part of a comprehensive ecosystem for family offices to set up in Hong Kong, Fong said.
“Many wealthy families have collected art to establish their family legacy,” Fong said in an exclusive interview with the Post. “This will allow them to store their collection in a secure and temperature-controlled facility.”
In his first policy address in October 2022, Chief Executive John Lee Ka-chiu announced a goal of attracting at least 200 large family offices by the end of 2025. He unveiled eight measures to attract wealthy individuals to set up family offices to manage their wealth, succession planning, art collections and charity work.
Airport Authority Hong Kong (AAHK) in January unveiled a blueprint for an airport city called Skytopia, which included a stand-alone art-storage facility and other related infrastructure, the city’s largest marina with 500 berths, hotels, fresh food markets and an indoor performance venue for 20,000 spectators.
Skytopia would be a landmark of its own and a world-leading destination, AAHK said.
Hong Kong has many art-storage providers, but the current facilities are inadequate, Fong said.
“Overseas buyers can fly to Hong Kong to inspect art at the airport-storage facility, negotiate a deal with the sellers and take it back with them,” Fong said. “A deal could be done within hours, which will enhance Hong Kong’s role as an art-trading centre. High security and a comfortable environment, combined with the ability of our airport to handle special cargo safely and efficiently, will be reassuring for global art collectors.”
Hong Kong reported a 50 per cent increase in art trading in 2022, according to the latest Art Basel and UBS Survey of Global Collecting report. Imports of art and antiques into Hong Kong reached a record US$30.7 billion in 2022, while exports rose to their second-highest level at US$33.4 billion.
The city’s high-net-worth individuals, those with investible assets in excess of US$1 million, led the way in snapping up newly discovered artists, with 69 per cent purchasing new works, the report showed.
“Together with Art Basel, our projects underscore Hong Kong’s role as a global cultural hub, where tradition meets modernity and local stories resonate globally,” Amy Lo Choi-wan, UBS’ Asia chairman of global wealth management, said in her speech at Art Basel Hong Kong on March 28.
Lok Yim, regional head of global private banking for Asia-Pacific at HSBC, said a comprehensive art-storage facility was needed to establish Hong Kong as a premier global art hub.
“We must enhance our art ecosystem with accessible, high-quality storage and art logistics services, particularly near the airport,” Yim said. “The initiatives will further solidify Hong Kong’s position as a leading hub for both family offices and the arts. Expanding modern storage capabilities not only supports art financing but also enables family offices to manage high-value art collections more effectively.”
InvestHK’s Fong said that for collectors who have no plan to trade, the airport-storage facility could be used to host guests to show off their collections and use them as collateral for loans from banks.
“Banks offer financing only if the artworks are preserved at a location with proper security and in a controlled environment,” he said.
HSBC, Citi and JPMorgan Chase are among the lenders that offer art financing.
