Singapore, Feb 5, 2026, 15:16 SGT — Regular session
- Hongkong Land (SGX:H78) slipped 0.3% to US$8.59 in afternoon deals
- Shares slipped following a two-day rally linked to a new Singapore commercial property fund
- Investors are eyeing the upcoming results update to gauge buyback timing and new fund commitments
Shares of Hongkong Land Holdings Ltd slipped 0.3% to US$8.59 by 3:17 p.m. Singapore time on Thursday, retreating slightly after a strong rally earlier this week. (IRASIA)
Investors are reacting to Hongkong Land’s launch of a new S$8.2 billion ($6.4 billion) commercial property fund in Singapore, alongside plans for a bigger capital return. The company revealed the perpetual, open-ended fund holds committed equity of S$4.1 billion, with over S$1.8 billion coming from third-party investors. Founding backers include Qatar Investment Authority and APG Asset Management. CEO Michael Smith highlighted that office vacancies in Singapore’s central business district remain “exceptionally tight,” with the portfolio currently 96% occupied. (Reuters)
The stock reached its highest intraday price in over ten years at US$9.12 a day earlier but pulled back to close 0.6% lower at US$8.62, following a 4.7% rise the session before, The Business Times reported. Trading volume topped 6.1 million shares. (The Business Times)
Smith told reporters the capital recycling drive provides Hongkong Land “a great way of recycling capital to buy back what we still believe is undervalued shares.” The company said it plans to maintain its stake in the fund above 30%, pitching the platform as a move toward hitting its US$100 billion assets-under-management target by 2035, The Straits Times reported. (The Straits Times)
The fund structure plays a key role. Unlike vehicles with a fixed lifespan, a perpetual open-end fund has no set end date and can keep accepting new investments over time instead of mandating an exit on a strict schedule.
For equity investors, the key issue is whether Hongkong Land can shift its property-heavy balance sheet toward more stable fee income, without giving up too much upside from rising office values. The main metric to watch is gross asset value — essentially the worth of the property portfolio within the fund.
Traders remain focused on the pace of the company’s buybacks and whether management can bring in new investors without ceding too much control over the Singapore portfolio. The stock has already proven it can jump sharply on headlines, only to retreat afterward.
In Singapore, this shift brings Hongkong Land nearer to major real estate managers who depend on third-party capital rather than solely owning properties. It raises the stakes on fundraising, deal flow, and leasing, beyond just focusing on book value.
The trade can shift quickly. Should office demand weaken or financing costs climb, the market might start doubting the value of the seed assets and the speed of acquisitions. Buybacks could also stall if the situation deteriorates.
Hongkong Land announced its expanded buyback programme will extend until June 30, 2027, kicking off once it publishes its 2025 annual results on March 5. Investors eyeing clues on the buyback pace, fundraising, and capital recycling will zero in on that date, especially after the recent rally in the stock. (Investegate)
