Hongkong Land ready to introduce US$6 billion Singapore property fund

Hongkong Land is preparing to unveil what is anticipated to be the largest private real estate fund in Singapore, managing over S$8 billion (US$6.2 billion) in assets. This will include premium commercial properties located in the prestigious Marina Bay waterfront area.

The newly established Singapore Central Private Real Estate Fund (SCPREF) will initially hold one-third stakes in One Raffles Quay, as well as in Marina Bay Financial Centre Towers 1 and 2, the Hong Kong-based developer announced on Friday.

The inclusion of these properties into the fund followed the expiration of Hongkong Land's pre-emptive offers to its joint venture partners.

The company emphasized that the fund's focus would be on managing high-end commercial properties in Singapore. It aims to create a unique investment platform by owning and operating some of the city-state's most valuable real estate, characterized by top-tier tenants, strategic locations, and steady rental yields. Over time, the fund is expected to generate earnings growth for Hongkong Land.

Additionally, One Raffles Link, a seven-story office building fully owned by Hongkong Land, will also be incorporated into the fund's portfolio. As of June, the total value of the properties in the fundOne Raffles Link, Marina Bay Financial Centre Towers 1 and 2, and One Raffles Quaywas S$3.9 billion, accounting for 3.2 million square feet of prime office space in Singapore.

In another development, Hongkong Land sold its one-third share in Marina Bay Financial Centre Tower 3 to Keppel Reit for approximately S$1.5 billion, which was 2% above the property's valuation as of June. The proceeds from the sale will increase the company's total capital recycling efforts since 2024 to US$2.8 billion, bringing it closer to its target of US$4 billion by 2027.

The SCPREF is expected to launch with more than double the assets of Hongkong Lands initial portfolio. The company noted that third-party capital commitments for the fund are nearing finalization.

This move aligns with Hongkong Lands broader goal of growing its assets under management to US$100 billion by 2035, with significant contributions from external investors. The company also reaffirmed that Singapore remains a key market for its business, with plans to reinvest capital from recent sales into high-end, integrated commercial properties.

Keppel Reit's CEO, Chua Hsien Yang, commented on the acquisition of Tower 3, calling it a rare opportunity to expand their stake in an iconic asset in the highly sought-after Marina Bay district. He highlighted that this acquisition reflects Keppel Reit's confidence in Singapore's premium office market and its strategy to build a strong portfolio of grade-A commercial assets.

As part of the deal, Keppel Reit launched a non-renounceable preferential offering of new units, aiming to raise about S$886 million to help fund the purchase and related expenses.

Sources:

• Hongkong Land poised to launch US$6 billion Singapore property fund