Hongkong Land Holdings Limited has announced substantial progress toward the launch of its first private real estate fund, the Singapore Central Private Real Estate Fund (SCPREF). This new entity is expected to begin managing assets under management (AUM) of more than S$8 billion, positioning it as Singapore’s largest private real estate fund upon its inception.

The fund will function as a dedicated, unique private investment platform. Its core focus will be the management of prime commercial property assets in Singapore. These assets are considered among Singapore’s most valuable in terms of their location, tenant base, and the resilience of their rental income. SCPREF will be seeded initially by Hongkong Land’s existing Singapore commercial portfolio. The fund is designed to generate future AUM and introduce a new earnings stream for the Company via fee income.

Prior to transferring its Singapore commercial interests into the fund, the Company was contractually obliged to offer its one-third interests in several joint venture assets to existing partners. These assets included 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). The deadline for acceptance was 11 December 2025.

Keppel REIT has agreed to acquire Hongkong Land’s interest in Marina Bay Financial Centre Tower 3 (MBFC T3). The sale price of approximately S$1.5 billion (US$1.1 billion) was 2% above the independent valuation. MBFC T3 offers close to 1.3 million square feet of office space.

Net proceeds from this sale significantly advance Hongkong Land’s capital recycling strategy. The sale increases the total capital recycled since 2024 to US$2.8 billion, achieving roughly 70% of the company’s US$4 billion target set for 2027.

Following the lapse of pre-emptive offers, Hongkong Land plans to transfer its interests in One Raffles Quay (ORQ) and MBFC Towers 1 and 2 into the new fund, SCPREF. The transfer will also include its 100% interest in One Raffles Link (ORL). These combined assets are valued at S$3.9 billion (US$3.0 billion) and provide approximately 3.2 million square feet of prime office space.

SCPREF is expected to launch with an AUM more than double the value of the seed portfolio provided by Hongkong Land. Equity commitments from third-party capital investors are currently in the final stages of documentation. The establishment of SCPREF supports 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. The capital recycled from the MBFC T3 sale and SCPREF will be used to further invest in ultra-premium integrated commercial properties there. A further announcement regarding the fund’s establishment is expected in the first quarter of 2026.