Hongkong Land Holdings has made significant advancements towards the launch of its first private real estate fund - the Singapore Central Private Real Estate Fund ( SCPREF ).

The SCPREF, the property developer notes, is expected to be the largest Singapore private real estate fund with more than S$8 billion of assets under management ( AUM ) at inception.

It will be solely focused on managing prime commercial property assets in Singapore, creating a unique private investment platform that will, the company points out, “own and operate some of Singapore’s most valuable real estate assets in terms of location, tenants and resilience of rental income”.

The SCPREF is expected to be seeded by Hongkong Land’s Singapore commercial portfolio and other assets acquired by the fund on inception and over time, the developer shares, creating future growth in earnings and AUM, as well as introducing a new earnings stream in terms of fee income for the company.

Prior to the transfer of the company’s interests in its Singapore commercial portfolio into the SCPREF, in accordance with its contractual obligations, the company has first offered its 33⅓% interests in 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 ) to its existing joint venture partners with a deadline of acceptance of December 11 2025.

MBFC T3

Keppel REIT has agreed to acquire Hongkong Land’s interest in MBFC T3, Hongkong Land states, based on an attributable property value of approximately S$1.5 billion ( US$1.1 billion ), 2% above Hongkong Land’s independent valuation as of June 30 2025. MBFC T3 provides close to 1.3 million square feet of office space on a 100% basis.

Net proceeds from the sale of MBFC T3, the developer shares, will increase its total capital recycling achieved since 2024 to US$2.8 billion from US$2.1 billion, around 70% of its 2027 US$4 billion capital recycling target.

MBFC T1 and T2, ORQ and One Raffles Link ( ORL )

As the pre-emptive offers for ORQ and MBFC T1 and T2 have now lapsed, Hongkong Land plans to transfer its interests in these assets into the SCPREF together with its 100% interest in ORL. Combined, these assets have a total attributable property value of S$3.9 billion ( US$3.0 billion ) as of June 30 2025 and contribute approximately 3.2 million square feet of prime office space in Singapore on a 100% basis.

The SCPREF is expected to launch with AUM more than double that of its seed portfolio. The level of equity commitments by third-party capital investors into the SCPREF is currently in the final stage of documentation. It is expected that these commitments, together with the sale proceeds from MBFC T3, will further support the company’s capital recycling strategic focus. 

The establishment of SCPREF is in line with its strategy to grow its AUM to US$100 billion by 2035, with meaningful participation from third-party capital investors.

Singapore remains a core market for Hongkong Land, with the company planning to use the capital recycled from the sale of MBFC T3 and the SCPREF to further invest in ultra-premium integrated commercial properties in Singapore as it continues to execute on its strategy.

A further announcement, Hongkong Land adds, is expected to be made in the first quarter of 2026 on the fund establishment of the SCPREF.