Hongkong Land Preps $6.2B Singapore Private Fund With Marina Bay, Raffles Assets

Hongkong Land on Friday revealed details of its first-ever private fund, a Singapore-focused vehicle with expected assets under management of S$8 billion ($6.2 billion), as the Jardine Matheson-controlled builder moves ahead with its strategy to become a fee-earning manager of third-party capital.

Singapore Central Private Real Estate Fund will be seeded with Hongkong Land’s one-third stakes in Marina Bay Financial Centre Towers 1 and 2 and One Raffles Quay, as well as the developer’s 100 percent interest in One Raffles Link, the company said in a release. The four prime office assets in Singapore’s downtown core have a combined attributable value of S$3.9 billion, according to Hongkong Land, and SCPREF aims to launch with AUM more than double that of the seed portfolio to establish itself as the Lion City’s largest private real estate fund.

The announcement comes after SGX-listed Keppel REIT exercised its right of first refusal and agreed to buy Hongkong Land’s one-third stake in Marina Bay Financial Centre Tower 3 for S$1.45 billion in a deal announced Thursday. 

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

Q1 2026 Launch Seen

The inaugural fund’s limited partners weren’t disclosed in Friday’s statement, as the level of equity commitment by third-party capital investors is still in the final stage of documentation, Hongkong Land said. Further announcements on SCPREF’s launch are expected to come in the first quarter of 2026.

In addition to its full ownership of One Raffles Link, Hongkong Land currently holds MBFC T1 and T2 and One Raffles Quay in joint ventures with Keppel REIT and Suntec REIT, with the three parties owning respective one-third stakes in each asset. The seed portfolio spans 3.2 million square feet (297,290 square metres) of office space on a 100 percent basis.

The establishment of SCPREF aligns with Hongkong Land’s goal, announced in 2024, to grow AUM to $100 billion by 2035 through a combination of LP capital partnerships, private funds and REITs.

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

Asset Sales on Track

Net proceeds from the MBFC T3 sale will boost Hongkong Land’s capital recycling since 2024 to $2.8 billion, or 70 percent of the company’s 2027 target of $4 billion. 

The exit comes two months after the builder completed its sale of Southeast Asia developer MCL Land to Malaysia’s Sunway Group for $579 million. That divestment followed Hongkong Land’s April sale of office floors and retail spaces at One Exchange Square to the Hong Kong Stock Exchange for HK$6.3 billion ($810 million).

Hongkong Land’s Singapore-listed shares closed 3.5 percent higher at $7.17 on Friday, following a 5.5 percent rise Thursday after news of the MBFC T3 deal.