Hongkong Land Holdings plans to launch its first private real estate fund in Singapore, the Singapore Central Private Real Estate Fund (SCPREF). It is expected to be the largest Singapore private real estate fund with over $8 billion of assets under management (AUM), the company says in a Dec 2 announcement. The fund will be focused on managing prime commercial property assets in Singapore.

SCPREF will be seeded by Hongkong Land's existing portfolio and future acquisitions. Before the transfer of the company's interests in its Singapore commercial portfolio into SCPREF, in accordance with its contractual obligations, Hongkong Land offered its one-third interests in One Raffles Quay, Marina Bay Financial Centre (MBFC) Towers 1 and 2, and MBFC Tower 3, to its existing joint venture partners, with Dec 11 as the deadline for acceptance.

Keppel REIT agreed to acquire Hongkong Land's interest in MBFC3, based on an agreed property value of $1.453 billion. According to Hongkong Land, net proceeds from the sale will increase the amount of capital it has recycled to US$2.8 billion ($3.62 billion), representing some 70% of its 2027 US$4 billion capital recycling target.

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Following the lapse of the preemptive offers for its interests in One Raffles Quay and MBFC Towers 1 and 2, Hongkong Land plans to transfer those stakes into SCPREF, along with its 100% interest in One Raffles Link. Together, the assets have a total attributable property value of $3.9 billion as of June 30 and comprise approximately 3.2 million sq ft of prime office space in Singapore on a 100% basis.

SCPREF's AUM will also be contributed by third-party investors, with equity commitments currently in the final stage of documentation, says the company. Further announcements on the fund will be made in 1Q2026.

The establishment of SCPREF aligns with Hongkong Land's ambition to grow its AUM to US$100 billion by 2035. "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," the company states.