Hongkong Land has acquired a 10.8% stake in Suntec REIT from ESR Group for a total of S$541m (€365.8m).
Suntec REIT holds a S$12.1bn portfolio of office buildings, mostly located in Singapore’s financial hub, with additional assets in Australia and the UK.
Among its assets are three blue-chip towers, which it owns jointly with Hongkong Land. It has a third interest in both Marina Bay Finance Centre Towers 1 and 2 and One Raffles Quay.
Hongkong Land’s new private fund, the Singapore Central Private Real Estate Fund, also has a third interest in each of these buildings.
Hongkong Land said: “The acquisition enables the company to deploy recently recycled capital into prime, income-producing commercial assets predominantly located in Singapore. This aligns with the company’s positive outlook and conviction in Singapore’s prime commercial property market.”
Additionally, the yield derived from the company’s stake in Suntec REIT will contribute to the diversification of Hongkong Land’s earnings profile, the company said.
Hongkong Land’s investment in Singapore-listed Suntec REIT has been made at a discount to its independent net asset value of S$2.03 per unit as of 31 December 2025.
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