Hongkong Land has partnered with Qatar Investment Authority (QIA) and Dutch pension asset manager APG to launch an open-ended Singapore office real estate fund with S$8.2bn (€5.5bn) in initial assets under management.
Sovereign fund QIA, as a founding investor, is contributing the Asia Square Tower 1 office asset tower to the Singapore Central Private Real Estate Fund (SCPREF) alongside a €420m cornerstone commitment from APG.
APG’s investment, which is being made on behalf of its pension fund client ABP, represents 15% of the platform’s initial capital.
SCPREF also holds one-third interest in Marina Bay Financial Centre Tower 1 & Tower 2 and Marina Bay Link Mall, a one-third interest in One Raffles Quay and 100% interest in One Raffles Link.
Hongkong Land holds a majority stake in SCPREF and will act as fund manager. It said SCPREF has launched with S$4.1bn in committed equity, including over S$1.8bn from third-party partners, as it moves towards a gross asset value of at least S$15bn through further institutional participation.
Brian Hung, MD, head of real estate, Asia-Pacific at APG Asset Management, said: “Singapore is a premier destination for the world’s leading businesses, and the fund serves as an unrivalled platform for increased institutional participation and market exposure at the core of a major global financial hub.
“Our Asia team’s deep market expertise was integral for bringing this cornerstone investment and partnership to fruition, providing a substantial opportunity for sustained value creation and advancing our client’s investment beliefs.”
Michael Smith, CEO of Hongkong Land, said: “In launching the Singapore Central Private Real Estate Fund, we again demonstrate our ability to execute our strategy through recycling capital to create shareholder value, as well as validating our value proposition in ultra-premium integrated commercial properties in Singapore, one of Asia’s leading gateway cities.
“The creation of SCPREF is a pivotal step in expanding Hongkong Land’s capital management and investment platform.”
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