Hong Kong’s market regulator bought 12 floors in its current office building from Swire Properties Ltd. for HK$5.4 billion ($692 million), supporting the city’s real estate market during one of its worst slumps.

The Securities and Futures Commission added three floors to the current nine it’s already renting at One Island East in the Quarry Bay area. The disposal will enable Swire Properties to realize cash from its investment in the property, according to an exchange filing on Friday.

Hong Kong’s office market has been under pressure in recent years from an economic slump and increased supply. Rents for offices have slid about 31% since 2019, according to data from Colliers International.

The SFC has had plans to acquire its own premises for several years to cut rental costs and find a permanent long-term home. Since it was established in 1989 it has moved four times.

At the end of March, the regulator had reserved HK$3.38 billion for the property acquisition, according to its annual report. Half of the transaction price will be funded from its reserve, the remaining from external loans, the SFC said.

The purchase was evaluated by independent surveyors, it said in a statement.

The watchdog collects levies, fees and charges and investment income for revenue. The regulator posted a loss of HK$101 million ($12.9 million) in the year ended March.

--With assistance from Shawna Kwan.