Hongkong Land to acquire Wheelock Place for $1.1 bil via newly launched SPREF
The inaugural acquisition signals institutional confidence in prime Orchard Road office and retail assets and could support further high-quality commercial acquisitions toward SPREF’s $15 billion target.
Hongkong Land will acquire Wheelock Place for $1.1 billion through SPREF, raising the Singapore commercial property fund’s AUM to an expected $9.4 billion.
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Hongkong Land Holdings will acquire Wheelock Place — a mixed-use development along Orchard Road — for $1.1 billion from Wharf Real Estate Investment Company through its Singapore Central Private Real Estate Fund (SPREF).
This marks the fund’s inaugural acquisition since it was first launched in February this year with $8.2 billion in initial assets under management (AUM). The seed properties include a 33.3% interest in MBFC Tower 1 and 2 and Marina Bay Link Mall, a 33.3% interest in One Raffles Quay, as well as a 100% interest in One Raffles Link and Asia Square Tower 1.
The fund was established with Hongkong Land as its manager and largest unitholder to pursue growth opportunities in Singapore's commercial real estate market through high-quality acquisitions, active asset management, operational enhancements and long-term value creation.
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SPREF’s AUM is expected to increase to $9.4 billion upon the planned completion of the acquisition by end-August, bringing it closer to its $15 billion AUM target, says the firm.
Wheelock Place is a 21-storey commercial building with two basement levels comprising office space, a retail podium and car parks, with a total gross floor area of approximately 465,866 sq ft.
Located within the Orchard Road precinct, Wheelock Place's prime location, established office and retail offerings, and long-term growth potential make it a strategic addition to SPREF's portfolio, adds Hongkong Land.
“To have secured this premium asset within months of the fund's launch reflects both the effectiveness of our fund management team and the confidence of our capital partners,” says Michael Smith, group chief executive of Hongkong Land. “It is a strong start, and one we fully intend to build on as we deliver on earnings accretion for investors and grow the Fund towards its target scale.”