Wharf Real Estate Investment (1997) sells the Wheelock Place development on Singapore's Orchard Road for S$1.11 billion (HK$6.73 billion) to Hongkong Land, made through Hongkong Land's Singapore Central Private Real Estate Fund (SCPREF) on Thursday.
Upon completion, Wharf Real Estate Investment is expected to record an unaudited profit of about HK$1 billion.
The deal will give the fund ownership of the development, which includes the Wheelock Place mall on Orchard Road, an iconic precinct in Singapore popular among tourists and wealthy shoppers.
Michael T. Smith, group chief executive of Hongkong Land, said SCPREF was created to acquire rare assets like Wheelock Place, noting that the sale reflects both the effectiveness of the company’s fund management team and the confidence of its capital partners.
Wheelock Place is situated at 501 Orchard Road, Singapore 238880. It comprises a 21-story commercial building and two basement levels incorporating offices, shopping podium and car parks, with a total gross floor area of approximately 43,280 square meters.
Hongkong Land, listed in Singapore and majority owned by Jardine Matheson, said the acquisition would lift the Singapore Central Private Real Estate Fund's assets under management to S$9.4 billion, moving it toward its S$15 billion target.
Launched in February, the fund also holds stakes in prime commercial properties including Asia Square Tower 1 and One Raffles Link.
Hongkong Land said the acquisition aligns with its strategy to grow recurring earnings and expand its fund management platform. SCPREF, managed by Hongkong Land and its largest unitholder, aims to pursue growth in Singapore’s commercial real estate through high-quality acquisitions, active asset management, operational improvements, and long-term value.
The company also mentioned that it will invest more equity to maintain its majority stake in SCPREF alongside other investors and earn additional management fees from increased AUM, adding that the acquisition should boost Hongkong Land's earnings after completion
Reuters and staff reporter
