Hongkong Land Launches $6.4B Singapore Fund Backed by QIA, APG

Hongkong Land has launched its inaugural private fund, a Singapore-focused vehicle with assets under management of S$8.2 billion ($6.4 billion) and backing from the Qatar Investment Authority and Dutch pension giant APG Asset Management.

Singapore Central Private Real Estate Fund is seeded with Hongkong Land’s one-third stakes in Marina Bay Financial Centre Towers 1 and 2 and One Raffles Quay, plus the developer’s 100 percent interest in One Raffles Link, as announced in December. SCPREF has also acquired another Marina Bay landmark, QIA’s Asia Square Tower 1, for the seed portfolio, the partners revealed Tuesday.

Singapore’s largest commercial real estate private fund counts QIA, APG and an “established Southeast Asia sovereign wealth fund” as founding investors, with Hongkong Land holding a majority stake at inception, the Jardine Matheson-controlled builder said in a release. CEO Michael Smith called the creation of SCPREF a pivotal step in Hongkong Land’s evolution as a capital management and investment platform.

“This partnership shows the strength and global appeal of Singapore’s prime office market and Hongkong Land’s ability to steward these best-in-class assets,” Smith said.

Anchor Asset

SCPREF’s seed portfolio represents 2.6 million square feet (241,548 square metres) of effective net lettable area, according to Hongkong Land, which said the fund has committed equity of S$4.1 billion, including S$1.8 billion in third-party capital.

QIA originally purchased Asia Square Tower 1 from asset management titan BlackRock in 2016 for S$3.4 billion (then $2.45 billion), with the sale of the 1.29 million square foot office property marking the largest-ever single-tower transaction in Asia Pacific at the time. The 43-storey building was completed in 2011 and is home to tenants including Citibank, which also carries naming rights.

In a separate statement Tuesday, QIA said its involvement in SCPREF reflected its longstanding conviction in Singapore as a leading gateway city with strong occupier demand, transparent regulation and long-term economic resilience.

“QIA’s participation as a founding investor underscores its strategy of partnering with best-in-class operators to access high-quality real assets in key global markets and generate resilient long-term returns,” said the $580 billion Qatari fund.

APG is making an initial commitment of S$630 million ($500 million) to SCPREF, with the pension manager pointing to the vehicle’s long-term exposure to an expanding portfolio of commercial properties aligned to global sustainability standards.

“Our Asia team’s deep market expertise was integral for bringing this cornerstone investment and partnership to fruition, providing a substantial opportunity for sustained value creation and advancing our client’s investment beliefs,” said Brian Hung, APG’s head of Asia Pacific real estate. “We are pleased to be supporting a highly reputable manager like Hongkong Land and partnering with high-quality institutional peers like Qatar Investment Authority.”

Capital Recycling Continues

SCPREF targets growing to at least S$15 billion ($11.8 billion) in gross asset value, benefiting from a pipeline of future commercial assets in Singapore that Hongkong Land may develop, the London-listed builder said.

The launch of SCPREF and last year’s sale of Marina Bay Financial Centre Tower 3 have enabled Hongkong Land to receive net proceeds of $1.3 billion, increasing the total proceeds from capital recycling activities since 2024 to $3.4 billion, or more than 80 percent of its 2027 $4 billion target, according to the company.

Hongkong Land’s other 2025 asset disposals included the sale of Southeast Asia developer MCL Land to Malaysia’s Sunway Group for $579 million, as well as the divestment of office floors and retail spaces at One Exchange Square to the Hong Kong Stock Exchange for HK$6.3 billion ($810 million).