Hongkong Land (HKLD.SI): A Small But Land-breaking Step: S$1.1bn Acquisition in Singapore

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Hongkong Land (HKLD.SI): A Small But Land-breaking Step: S$1.1bn Acquisition in Singapore

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30 Jul 2026 08:02:21 ET │ 11 pages

Hongkong Land (HKLD.SI)

A Small But Land-breaking Step: S$1.1bn Acquisition in Singapore

CITI'S TAKE

Buy SCPREF’s inaugural acquisition: S$1.1bn entry into Orchard Road,

Singapore — Hongkong Land announced on 30-Jul-2026 (link) to have Short-Term View: Upside, expires 29-AUG-26

entered into a definitive agreement to acquire Wheelock Place from Wharf Price (30 Jul 26 17:06) US$8.34

REIC, for S$1.1bn. Wheelock Place is a 21-storey building with 272k sqft Target price US$9.90

retail podium and 194k sqft office area that located on Orchard Road in Expected share price return 18.7%

Singapore. Completion is expected on 31-Aug-2026. SCPREF’s AUM is Expected dividend yield 3.2%

expected to increase to S$9.4bn afterwards (+13% to S$8.2bn AUM as of Expected total return 21.9%

30-Jun-2026).

Market Cap US$17,776M

Putting capital to work: strategic acquisition at prime location — While this

S$1.1bn acquisition only represents 1.7% of HKL’s US$51.8bn AUM, we view it as a

meaningful step forward for its fund platform and an important milestone as HKL Cindy LiAC

transition from capital recycling to capital deployment. We estimate the transaction +852-2501-2710

implies cap rates of c.3.4% for the office component and c.3.9% for the retail part, cindy.li@citi.com

which appears broadly in line with market levels and reasonably attractive given the Griffin Chan

asset's prime Orchard Road location and direct connectivity to Orchard MRT station. +852-2501-2438

The premium to book value, in our option, is justified by the scarcity of institutional- griffin.chan@citi.com

grade assets available along Singapore's premier retail corridor and the limited