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Hongkong Land buys Wheelock Place for about US$900 million
The deal is expected to close by the end of August, and it would lift SCPREF assets under management to S$9.4 billion from S$8.2 billion.
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, known as SCPREF, in the fund’s first acquisition since launching in February, according to the company’s statement reported by the SCMP Economy.
The mixed-use commercial property is on Orchard Road and will be bought from an entity owned by Hong Kong-listed Wharf Real Estate Investment Company. The transaction is expected to be completed by the end of August, SCMP Economy said, and the agreed price was said to align with a recent independent valuation.
After the acquisition, SCPREF’s assets under management would increase to S$9.4 billion from S$8.2 billion, moving the fund closer to its target of about S$15 billion. Hongkong Land also said Wheelock Place is a 21-storey building with offices, a retail podium, and two basement levels with shops and car parks, and it is connected directly to the Orchard MRT station.
Hongkong Land established SCPREF to acquire income-producing commercial properties in Singapore’s central business district and the Orchard Road precinct. The developer, as fund manager and largest unit holder, said it will inject additional equity to maintain its majority stake following the purchase.