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Hongkong Land, a historic property developer founded in 1889, has made a significant move in the investment space by launching Singapore Central Private Real Estate Fund (SCPREF), which is now Singapore's largest private retail fund. Under the leadership of CEO Michael Smith, who took the helm in 2024, the company is transitioning its focus toward fund management and the commercial real estate sector.

The SCPREF aims to capitalize on prime commercial assets situated in Singapore’s central business district, boasting around 8.2 billion Singapore dollars (approximately $6.5 billion) in assets. Its initial portfolio includes prominent buildings like Asia Square Tower 1, One Raffles Link, and the Marina Bay Financial Center Towers 1 and 2, as well as the Marina Bay Link Mall.

Smith expressed his vision for the fund during an interview with Fortune: “Going forward, we imagine ourselves having a series of funds with high-quality investors alongside us, creating fund management revenue.” Among these investors are notable entities such as the Qatar Investment Authority (QIA) and APG Asset Management, which is affiliated with a Dutch pension fund. Smith also mentioned that an unspecified "established Southeast Asian sovereign wealth fund" has invested in SCPREF.

The attraction of private real estate funds for sovereign investors lies in the certainty they provide in returns. Smith elaborated, “Sovereign wealth funds have capital to deploy, but it needs to be protected—and these funds meet those needs.” The QIA further reinforced this strategic partnership, stating that its involvement in SCPREF highlights its commitment to aligning with top-tier operators to access high-quality real assets in key global markets, thereby generating resilient long-term returns.

Smith has ambitious plans for the fund, aiming for it to reach a valuation of $15 billion. SCPREF is designed as an open-ended fund, allowing for a continuous influx of new investors without a fixed term.

Recent years have been favorable for Singapore’s property market, with real estate investment sales surging by 27% in 2025, totaling $26.9 billion, marking the highest level since 2017. This growth is a crucial backdrop for Hongkong Land’s strategic pivot.

As Michelle Ling, Hongkong Land’s chief investment officer, pointed out, “The latest new supply has been absorbed, and the government has no intention of increasing office land supply within the central business district.” This context positions Hongkong Land favorably as it focuses on commercial real estate.

However, the company's shares, traded in Singapore, experienced a slight dip of 0.6% on February 4, erasing early gains. Nonetheless, the stock has doubled in value over the past year, showcasing investor confidence despite fluctuations.

A New Era for a Historic Company

Hongkong Land has a storied history, with founders Sir Paul Chater and James Johnstone Keswick being among the pioneers in land reclamation in Hong Kong, shaping what is now the city's central business district. Today, the company manages around $40 billion in assets and has expanded its footprint into regional markets such as mainland China, Singapore, Indonesia, Cambodia, Thailand, and the Philippines.

Despite its historical successes, the company has faced challenges, particularly in the property markets of mainland China and Hong Kong, alongside struggles in its residential developments. Smith highlighted the difficulties encountered in various markets, noting, “We had apartments in Cebu in the Philippines, and in Wuhan and Bangkok—but we never had sufficient scale in any of those markets to be a meaningful player.”

Financially, Hongkong Land reported $751 million in revenue for the first six months of 2025, a 23% drop year-on-year. However, it did manage to turn a profit of $222 million post-tax over the same period, a significant rebound from an $828 million loss the previous year, which was exacerbated by non-cash impairments.

Under Smith’s leadership, the company is shedding its less lucrative residential projects. Last November, it divested its residential arm, MCL Land, to Malaysia’s Sunway Group for $579 million. Smith's strategy mirrors trends among other property developers like CapitaLand and Mapletree, who are moving toward asset-light models that enhance agility and reduce debt.

Smith aims to reposition Hongkong Land as a more proactive player in the property market. “We’ve had these great assets, but we’ve been a bit like a herbivore. We’ve just been collecting rent, and haven’t done much more than that with them over many years,” he quipped. His plans extend beyond Singapore, eyeing opportunities in "gateway cities" across Asia, such as Tokyo, Seoul, and Sydney. Smith defines these cities as the hubs where finance and technology converge, stating, “Where the finance and tech bros all want to be, we want to be.”