The PMQ project is one of the eight projects under the "Conserving Central" initiative announced by the Chief Executive in his 2009-10 Policy Address.

Responding to the views collected in a public engagement exercise in 2008, the PMQ revitalisation project capitalises on the uniqueness of the Site and brings together three project objectives, namely:-

• promotion of creative industries
• heritage conservation
• provision of local open space

The Secretary for Development (on 15 November 2010) announced to transform the former Police Married Quarters on Hollywood Road into a creative industries landmark named "PMQ" by the Musketeers Education and Culture Charitable Foundation Ltd. (Musketeers Foundation), with the support of Hong Kong Design Centre, The Hong Kong Polytechnic University, and Hong Kong Design Institute of the Vocational Training Council.

The Government financed the essential structural and building services works; while the Operator is responsible for the capital costs for renovation and interior decoration beyond the Government works, as well as the operating expenditure for management, operation and maintenance of the revitalised Site. This arrangement also helps expediting the delivery of the project.

The Musketeers Foundation has set up a special purpose company, which has acquired charitable status under section 88 of the Inland Revenue Ordinance (Cap. 112), for the implementation of the project and future day-to-day operation of the revitalised Site. To facilitate longer-term business planning for the project, the Government has entered into a tenancy agreement with the above-mentioned special purpose company on a fixed term of ten years, renewable for another five years. For the delivery and future operation of the revitalised facilities at the PMQ site, any net operating surplus arising from the operation of the "PMQ" project will be shared between the Government and the operator every five years on a 50/50 basis. It is not an objective of the "PMQ" project to maximise profit and the Musketeers Foundation has committed to ploughing back its share of the net operating surplus for the operation of the creative industries landmark.

The Government works closely with the selected non-profit-making organisation (i.e. Musketeers Foundation) and the local creative industries to implement the revitalisation project.