Hongkong Land Fund to Acquire Singapore's Wheelock Place for SG$1.1 Billion
Hongkong Land Holdings' (SGX:H78) newly established private real estate vehicle, the Singapore Central Private Real Estate Fund (SCPREF), has agreed to acquire the Wheelock Place commercial development in Singapore for approximately SG$1.1 billion, according to a Thursday filing to the Singapore bourse.The property will be acquired from Wharf Real Estate Investment (HKG:1997), marking the fund's maiden deal since its inception in February. The acquisition encompasses Wheelock Place's 21-story commercial tower and retail podium, which cover approximately 43,280 square meters of gross floor area.The transaction is expected to be completed by the end of August, after which SCPREF's assets under management will increase to SG$9.4 billion from SG$8.2 billion at inception. It is expected to be accretive to Hongkong Land's underlying earnings upon completion.Hongkong Land said it will invest additional equity to maintain its existing majority equity stake in the fund with other investors and will earn additional management fees from the increase in AUM.
