SINGAPORE: Hongkong Land Holdings said on Tuesday it had launched its first private real estate fund, seeded with S$8.2 billion ($6.4 billion) of Singapore commercial property assets, which it aims to grow to at least S$15 billion in gross asset value.
The launch of the Singapore Central Private Real Estate Fund represents a milestone in a strategy announced in October 2024, said Hongkong Land, adding it recycles capital from its prime assets and will help it form a third party investment platform as it targets $100 billion of assets under management by 2035.
The fund is a perpetual open-end vehicle and holds interests in office-led assets including Asia Square Tower 1 and One Raffles Link and stakes in Marina Bay Financial Centre Towers 1 and 2 and Marina Bay Link Mall, and One Raffles Quay.
Hongkong Land CEO Michael Smith said that Singapore’s CBD (central business district) office vacancies were “exceptionally tight” and the fund’s portfolio was 96% occupied.
Smith told Reuters that the fund will target at least S$15 billion in gross asset value within five years.
“We have a clear acquisition pipeline to support this trajectory, focused on the Marina Bay area,” he added.
Hongkong Land said it will be the fund’s general partner and manager and will hold a majority stake at inception, alongside founding investors Qatar Investment Authority and APG Asset Management as well as a Southeast Asia sovereign wealth fund.
It said in a statement that the fund had committed equity of S$4.1 billion, including more than S$1.8 billion of third-party capital, adding that it was in talks to bring in additional institutional investors.
Smith said potential new commitments could come as early as the second half of 2026.
Hongkong Land also said the fund launch and net proceeds from the sale of Marina Bay Financial Centre Tower 3 meant it had received net proceeds of $1.3 billion, taking total proceeds from capital recycling since 2024 to $3.4 billion, more than 80% of its $4 billion target for 2027.
It said it would increase its share buyback programme by $300 million, taking the total since 2024 to $650 million.
“Around 50% of this has already been utilised, with the remainder of the programme running through 2027,” Smith said.
