Hongkong Land Fund Acquires Wheelock Place in Singapore for $1.1 Billion

SINGAPORE – Hongkong Land Holdings announced on July 30 that its Singapore Central Private Real Estate Fund (SCPREF) will acquire Wheelock Place from Wharf Real Estate Investment for approximately $1.1 billion. This transaction represents the fund's inaugural acquisition since its launch earlier this year.

The deal will enhance SCPREF's assets under management to $9.4 billion, up from $8.2 billion, as it moves towards its target of $15 billion. Wheelock Place, located on the iconic Orchard Road, spans around 43,280 square meters and comprises a 21-storey commercial building, a shopping podium, and two basement levels of offices and parking facilities. The site is held under a 99-year lease, with roughly 63 years remaining.

Michael Smith, group CEO of Hongkong Land, emphasized the strategic importance of this acquisition, stating that it is a strong start and one the company fully intends to build on as it delivers on earnings accretion for investors and grows the fund towards its target scale. The acquisition is expected to positively impact the group's underlying earnings upon completion, which is anticipated by the end of August.

“It is a strong start, and one we fully intend to build on as we deliver on earnings accretion for investors and grow the fund towards its target scale.”Michael Smith, CEO, Hongkong Land

Hongkong Land, listed in Singapore and primarily owned by Jardine Matheson, aims to enhance its fund management platform through this acquisition. The fund has previously invested in high-quality commercial properties, including Asia Square Tower 1 and One Raffles Link.

In a broader market context, the sale of Wheelock Place aligns with Wharf Group's strategy to divest its Singapore assets, as it has also put its Scotts Square mall on the market for $380 million, significantly below its previous guide price of $450 million. This trend reflects ongoing adjustments in Singapore's commercial real estate landscape, which has seen increased interest from various investors.

As Hongkong Land's SCPREF continues to grow, the company plans to invest additional equity to maintain its majority stake in the fund, which includes backing from significant investors like the Qatar Investment Authority and APG Asset Management. The fund's strategic focus on prime commercial assets in Singapore aims to leverage active management to enhance value.