Hongkong Land launches major Singapore commercial property fund

New fund targets Singapore’s tight office market

Hongkong Land Holdings has launched its first private real estate fund, anchored by S$8.2 billion, or about $6.4 billion, of prime commercial assets in Singapore. The newly established Singapore Central Private Real Estate Fund is designed to capitalise on strong demand for high-quality office space in the city-state’s central business district, with the company aiming to grow the fund’s gross asset value to at least S$15 billion within five years.

The launch marks a significant milestone in a strategy unveiled in October 2024, under which Hongkong Land seeks to recycle capital from its prime assets while building a third-party investment platform. The group has set an ambitious long-term goal of reaching $100 billion in assets under management by 2035.

Portfolio anchored in Marina Bay and CBD

Structured as a perpetual open-ended vehicle, the fund holds interests in office-led developments located at the core of Singapore’s financial district. Its portfolio includes Asia Square Tower 1 and One Raffles Link, alongside stakes in Marina Bay Financial Centre Towers 1 and 2, Marina Bay Link Mall and One Raffles Quay.

Chief executive Michael Smith said office vacancies in Singapore’s CBD remain “exceptionally tight,” with the fund’s assets currently around 96% occupied. He added that Hongkong Land has a clearly defined acquisition pipeline, largely focused on the Marina Bay precinct, to support the fund’s targeted growth trajectory.

Institutional backing and future capital inflows

Hongkong Land acts as both general partner and manager of the fund and retains a majority stake at inception. Founding investors include Qatar Investment Authority, Dutch pension investor APG Asset Management and a Southeast Asian sovereign wealth fund. Total committed equity stands at S$4.1 billion, including more than S$1.8 billion from third-party investors.

The company said it is in discussions with additional institutional investors, with potential new commitments expected as early as the second half of 2026, underlining continued global appetite for core Asian commercial real estate.

Capital recycling and shareholder returns

Alongside the fund launch, Hongkong Land completed the sale of Marina Bay Financial Centre Tower 3, contributing to net proceeds of $1.3 billion. This brings total capital recycled since 2024 to $3.4 billion, surpassing 80% of the company’s $4 billion target set for 2027.

Reflecting its strengthened balance sheet, the group also announced an expansion of its share buyback programme by $300 million, taking the total repurchase commitment since 2024 to $650 million. Roughly half of this amount has already been executed, with the remainder scheduled to run through 2027.

As International Investment experts report: Hongkong Land’s Singapore fund highlights the growing role of institutional capital in Asia’s prime commercial real estate markets. With vacancy rates in top CBD locations remaining low, such vehicles are increasingly seen as defensive, long-term investments offering stable income and strategic scale.