Hongkong Land will acquire Singapore’s Wheelock Place for about S$1.1 billion (US$900 million) through its Singapore Central Private Real Estate Fund (SCPREF), marking the fund’s first acquisition since its launch in February.
The mixed-use commercial property on Orchard Road is being acquired from an entity owned by Hong Kong-listed Wharf Real Estate Investment Company, according to a statement released by Hongkong Land on Thursday. The transaction is expected to conclude by the end of August.
Following completion, SCPREF’s assets under management would increase to S$9.4 billion from S$8.2 billion, bringing the fund closer to its target of about S$15 billion, the statement said, adding that the agreed price was in line with a recent independent valuation.
The acquisition comes as Hongkong Land steps up efforts to grow its fund-management business.
Wheelock Place comprises a 21-storey commercial building with offices, a retail podium and two basement levels containing shops and car parks. The property has a gross floor area of about 43,280 square metres (466,000 sq ft) and is directly connected to the Orchard MRT station.
Hongkong Land established SCPREF in February to acquire income-producing commercial properties in Singapore’s central business district and Orchard Road precinct. The developer, which is the fund’s manager and largest unit holder, said it would inject additional equity to maintain its majority stake following the acquisition.
