Hongkong Land Holdings Limited has announced the launch of its first private real estate fund, the Singapore Central Private Real Estate Fund (SCPREF), which is set to become the largest of its kind in Singapore. The fund will manage more than S$8b in assets, focusing on prime commercial properties in Singapore. This strategic move is expected to enhance Hongkong Land’s earnings and asset growth, whilst also introducing a new revenue stream through fee income.
The SCPREF will be seeded by Hongkong Land’s existing Singapore commercial portfolio, including interests in One Raffles Quay and Marina Bay Financial Centre Towers 1 and 2. The company has already agreed to sell its interest in Marina Bay Financial Centre Tower 3 to Keppel REIT for approximately S$1.5b, a deal that exceeds its independent valuation by 2%.
The proceeds from this sale will contribute to Hongkong Land’s capital recycling efforts, which have reached US$2.8b since 2024, moving closer to its 2027 target of US$4b. The SCPREF is expected to launch with assets under management more than double that of Hongkong Land’s seed portfolio, supported by equity commitments from third-party investors.
Hongkong Land’s strategy aims to grow its assets under management to $100b by 2035, with significant participation from external capital. The company plans to reinvest the capital from these transactions into ultra-premium commercial properties in Singapore, reinforcing its commitment to the market. A further announcement regarding SCPREF is anticipated in early 2026.
