Asian property giant Hongkong Land to acquire Singapore’s 21-story building for $900M

The property on Orchard Road is being purchased from an entity owned by Wharf Real Estate Investment Company, according to a statement issued by Hongkong Land on Thursday. The transaction is expected to be completed by the end of August.

The buyer is Singapore Central Private Real Estate Fund (SCPREF), a new entity controlled by Hongkong Land, one of Asia’s largest property investment, management, and development companies, with a portfolio concentrated in Hong Kong, Singapore, and several major cities across Asia.

Upon completion, SCPREF’s assets under management will increase to SGD9.4 billion from SGD8.2 billion, moving the fund closer to its target of about SGD15 billion, the company said. It added that the agreed purchase price was consistent with a recent independent valuation.

Wheelock Place, Singapore. Photo via Google Maps/Mangesh Gole

Wheelock Place comprises a 21-story commercial building with office space, a retail podium, and two basement levels housing shops and parking facilities. The property has a gross floor area of about 43,280 square meters and is directly connected to the rail network known as MRT.

The acquisition comes as Hongkong Land accelerates the expansion of its fund management business.

Hongkong Land launched SCPREF in February to acquire income-generating commercial properties in Singapore’s central business district and Orchard Road precinct, according to the South China Morning Post.

The developer, which serves as the fund’s manager and largest unitholder, said it will inject additional equity to maintain its majority stake following the acquisition.

Group CEO Michael Smith said the transaction represents the fund’s first acquisition and marks Hongkong Land’s entry into Singapore’s Orchard Road commercial market through SCPREF.

“While this SGD1.1 billion acquisition only represents 1.7% of Hongkong Land’s US$51.8 billion in assets under management, we view it as a meaningful step forward for its fund platform and an important milestone as it transitions from capital recycling to capital deployment,” a Citi research report issued Thursday said.

The sale of Wheelock Place comes as Hong Kong’s Wharf Group continues to market another Singapore property.

The company had relaunched the sale of Scotts Square mall with an asking price of SG380 million, about 15% below the price sought in 2024, according to The Business Times.