QIA anchors $6bn Singapore real estate fund

The state-owned Qatar Investment Authority (QIA) has backed a private real estate fund focusing on Singapore’s commercial property market as a founding investor.

The Singapore Central Private Real Estate Fund, launched by Hongkong Land Holdings, a property investment, management and development group, is seeded with commercial assets under management of S$8.2 billion ($6.3 billion), the sovereign fund said in a statement.

The property fund, anchored by Asia Square Tower 1, located in Singapore’s Marina Bay precinct, has been owned by QIA since 2016. The tower was purchased from US-based asset manager BlackRock for S$3.4 billion. 

Other assets include ultra-premium, income-generating commercial properties in the central business district and on Orchard Road. 

While no financial details were given, QIA said it will provide long-term institutional capital and the capability to support the fund’s growth strategy.

In a separate statement, Hongkong Land said the fund will provide a foundational boost to its target of $100 billion in assets under management by 2035 by forming a third-party capital investment platform with global institutional investors.

The fund has committed S$4.1 billion in equity, with over S$1.8 billion in third-party capital. It is targeting at least S$15 billion in gross asset value through selective high-quality acquisitions.

In January, QIA signed a preliminary agreement with Goldman Sachs, committing $25 billion in investments to US managed funds and co-investment opportunities.

QIA has nearly $580 billion in assets under management, according to Global SWF, a data platform that tracks sovereign wealth funds.

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