Hongkong Land has announced it is setting up its Singapore Central Private Real Estate Fund (SCPREF).
SCPREF is expected to be seeded by Hongkong Land’s Singapore commercial portfolio and other assets acquired by the fund on inception and over time, creating future growth in earnings and assets under management (AUM), as well as introducing a new earnings stream in terms of fee income for the company.
The seed assets are likely to be Hongkong Land’s one-third stake in Marina Bay Financial Centre (MBFC) Towers 1&2, its one-third stake in One Raffles Quay (ORQ) and its 100% stake One Raffles Link (ORL).
Prior to the transfer of the company’s interests in its Singapore commercial portfolio into SCPREF, in accordance with its contractual obligations, the company first offered its 33⅓% interests in One Raffles Quay , MBFC Towers 1&2 and MBFC Tower 3 to its existing joint venture partners with a deadline of acceptance of Dec 11.
Keppel REIT has agreed to acquire Hongkong Land’s interest in MBFC Tower 3.
Net proceeds from the sale of MBFC T3 will increase Hongkong Land’s total capital recycling achieved since 2024 to US$2.8 billion from US$2.1 billion, around 70% of its 2027 US$4 billion capital recycling target.
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As the pre-emptive offers for ORQ and MBFC Tower 1 & 2 have now lapsed, Hongkong Land plans to transfer its interests in these assets into SCPREF together with its 100% interest in ORL. Combined, these assets have a total attributable property value of $3.9 billion as of end-June, and contribute approximately 3.2 million sq ft of prime office space in Singapore on a 100% basis.
SCPREF is expected to launch with AUM more than double that of Hongkong Land’s seed portfolio. The level of equity commitments by third-party capital investors into SCPREF is currently in the final stage of documentation. It is expected that these commitments, together with the sale proceeds from MBFC Tower 3, will further support the company’s capital recycling strategic focus.
The establishment of SCPREF is in line with the company’s strategy to grow its AUM to US$100 billion by 2035, with meaningful participation from third-party capital investors.
Singapore remains a core market for Hongkong Land, with the company planning to use the capital recycled from the sale of MBFC Tower 3 and SCPREF to further invest in ultra premium integrated commercial properties in Singapore as it continues to execute on its strategy. A further announcement is expected to be made in the first quarter of 2026 on the fund establishment of SCPREF.
