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Hongkong Land has launched its first private real estate fund, seeded with SGD 8.2 billion worth of Singapore commercial assets. The perpetual fund holds prime office-led properties in the Marina Bay and Raffles Place areas and has attracted major institutional investors, including QIA and APG. With a current occupancy of about 96%, the company plans to grow the fund to at least SGD 15 billion in gross asset value within five years. The move supports its long-term asset management and capital recycling strategy.
Hongkong Land Holdings announced the launch of its first private real estate fund after seeding it with Singapore commercial assets valued at about SGD 8.2 billion, equivalent to USD 6.4 billion. The fund, named the Singapore Central Private Real Estate Fund, marks a key step in the company's long-term strategy to recycle capital from prime properties while building a third-party investment platform. Advertisement
The initiative follows a roadmap shared in late 2024, under which the group is working towards managing USD 100 billion in assets by 2035. The new fund is structured as a perpetual open-end vehicle and is anchored by office-led assets located in Singapore's core business districts. These include Asia Square Tower 1, One Raffles Link, Marina Bay Financial Centre Towers 1 and 2, Marina Bay Link Mall, and One Raffles Quay.
Hongkong Land's management indicated that office market conditions in Singapore's central business district remain tight, with vacancy levels at historic lows. As a result, the fund's initial portfolio is already about 96% occupied, reflecting steady demand for high-quality office space in the Marina Bay and Raffles Place areas.
The company aims to scale the fund to a gross asset value of at least SGD 15 billion within the next five years. This growth is expected to be supported by a defined acquisition pipeline, with a strong focus on the Marina Bay precinct, which continues to attract multinational tenants and financial institutions.
At launch, Hongkong Land holds a majority stake and serves as both general partner and fund manager. Founding investors include the Qatar Investment Authority, Dutch pension investor APG Asset Management, and a sovereign wealth fund from Southeast Asia. The fund has secured committed equity of around SGD 4.1 billion, of which more than SGD 1.8 billion has come from third-party investors. Discussions are ongoing with additional institutional investors, with new commitments potentially expected in the second half of 2026.
Alongside the fund launch, Hongkong Land confirmed that proceeds from the transaction and the earlier sale of Marina Bay Financial Centre Tower 3 have generated net inflows of about USD 1.3 billion. This has lifted the group's total capital recycling proceeds since 2024 to approximately USD 3.4 billion, crossing more than 80% of its USD 4 billion target set for 2027.
The company also announced an expansion of its share buyback programme by USD 300 million, taking the total announced since 2024 to USD 650 million. About half of this amount has already been utilised, while the remaining buyback is scheduled to continue through 2027.
Source Reuters
5th Jun, 2025
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