- Wharf Real Estate Investment sells the Wheelock Place development on Singapore's Orchard Road for S$1.11 billion to Hongkong Land, made through Hongkong Land's Singapore Central Private Real Estate Fund (SCPREF).
- Hongkong Land's SCPREF makes its maiden acquisition with the S$1.1 billion Wheelock Place deal, which is expected to lift the fund's assets under management to S$9.4 billion.
- CEO Michael T. Smith stated that the acquisition is a strong start for the fund, which aims to deliver earnings accretion for investors.
- The acquisition aligns with Hongkong Land's strategy of growing recurring earnings and expanding its fund management platform.
- SCPREF, launched in February, is Singapore's largest commercial real estate private fund and aims for a target AUM of S$15 billion.
Hongkong Land's Singapore Central Private Real Estate Fund (SCPREF) has successfully acquired Wheelock Place for S$1.1 billion, a strategic move that elevates the fund's assets under management to S$9.4 billion. This acquisition is pivotal as it aligns with the company's goal of reaching S$15 billion in AUM.1245
CEO Michael T. Smith emphasized the significance of this deal, stating, “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.” The acquisition is expected to enhance Hongkong Land's earnings upon completion and reflects the effectiveness of its fund management team.3
The deal marks SCPREF's first acquisition since its launch in February, excluding initial seed properties. The fund, which is Singapore’s largest commercial real estate private fund, aims to secure rare assets like Wheelock Place, which is strategically located in the Orchard Road precinct. This acquisition not only boosts the fund's profile but also demonstrates the confidence of its capital partners, including Qatar Investment Authority and APG Asset Management.
Hongkong Land plans to invest more equity to maintain its majority stake in SCPREF, which is expected to further increase management fees from the growing AUM. The company anticipates that this acquisition will significantly contribute to its recurring earnings strategy and expand its fund management platform.
“The acquisition will increase SCPREF's assets under management to S$9.4 billion, moving closer to its S$15 billion target. Michael T. Smith emphasized that securing this premium asset shortly after the fund's launch reflects the effectiveness of their fund management team and the confidence of their capital partners.”
