Hongkong Land launches S$8.2bn Singapore office fund, boosts capital recycling and share buybacks
Summary:
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Hongkong Land has launched the Singapore Central Private Real Estate Fund (SCPREF), its inaugural private real estate fund, with S$8.2 billion (US$6.4 billion) of assets under management at inception, making it Singapore’s largest office-focused private fund and among the largest Asia-focused real estate funds by AUM.
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The initial portfolio comprises five prime Singapore CBD and Marina Bay assets totalling 2.6 million sq ft NLA, with the fund targeting at least S$15 billion in gross asset value through selective acquisitions and a development pipeline.
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Hongkong Land will act as General Partner, fund manager and property manager, retaining a majority stake alongside cornerstone investors Qatar Investment Authority, APG and an established Southeast Asia sovereign wealth fund, with S$4.1 billion of committed equity including over S$1.8 billion in third-party capital.
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The SCPREF launch and proceeds from the disposal of Marina Bay Financial Centre Tower 3 have generated US$1.3 billion of net capital for Hongkong Land, taking total recycling since 2024 to US$3.4 billion, more than 80% of its US$4 billion 2027 target, and underpinning balance sheet strength and future investments.
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Supported by this capital recycling, Hongkong Land is increasing its share buyback programme by US$300 million to US$650 million in total, with the extended programme running through 30 June 2027 and all repurchased shares intended to be cancelled, while SCPREF also advances the group’s sustainability-led strategy via Green Mark Platinum/Super Low Energy-certified assets.