Hongkong Land Holdings said today that it has “made significant advancements towards the launch of its first private real estate fund – the Singapore Central Private Real Estate Fund (SCPREF).
SCPREF is expected to be the largest Singapore private real estate fund with more than S$8bn ($6.2bn) of assets under management (AUM) at inception, according to the company.
The fund will be solely focused on managing prime commercial property assets in Singapore, creating a private investment platform that will own and operate some of Singapore’s most valuable real estate assets in terms of location, tenants, and resilience of rental income.
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 AUM, as well as introducing a new earnings stream in terms of fee income for the company.
Before the transfer of the company’s interests in its Singapore commercial portfolio into SCPREF, in accordance with its contractual obligations, the company has first offered its 33⅓% interests in One Raffles Quay (ORQ), Marina Bay Financial Centre Towers 1 and 2 (MBFC T1 and T2) and Marina Bay Financial Centre Tower 3 (MBFC T3) to its existing joint venture partners with a deadline of acceptance of 11 December 2025.
Keppel REIT has agreed to acquire Hongkong Land’s interest in MBFC T3, based on an attributable property value of approximately S$1.5 billion, 2% above Hongkong Land’s independent valuation as of 30 June 2025. MBFC T3 provides close to 1.3 million square feet of office space on a 100% basis.
Net proceeds from the sale of MBFC T3 will increase Hongkong Land’s total capital recycling achieved since 2024 to $2.8bn from $2.1bn, around 70% of its 2027 $4bn capital recycling target.
As the pre-emptive offers for ORQ and MBFC T1 and T2 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 S$3.9 billion as of 30 June 2025 and contribute approximately 3.2 million square feet 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 T3, 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 $100bn 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 T3 and SCPREF to further invest in ultra-premium integrated commercial properties in Singapore as it continues to execute on its strategy, according to the company.
A further announcement is expected to be made in the first quarter of 2026 on the fund establishment of SCPREF.
Hongkong Land Holdings Limited has a primary listing on the London Stock Exchange, with secondary listings in Singapore and Bermuda. Hongkong Land is a member of the Jardine Matheson Group.
