Citi has released a research report stating that WHARF REIC (01997) sold Wheelock Place in Singapore for S$1.1 billion (approximately HK$6.73 billion). The transaction price reflects an 11.7% premium, and the group is expected to record a disposal gain of around HK$1 billion. Citi maintains a "Buy" rating on WHARF REIC with a target price of HK$31.6.

The investment bank anticipates the market will now focus on the potential sale of Scotts Square, the group's sole remaining asset in Singapore. Citi takes a positive view of this non-core asset disposal, estimating the capitalization rates for the office and retail components at 3.4% and 3.9%, respectively. The sold asset accounts for approximately 2.7% of the group's total portfolio value, which will help reduce debt and lower finance costs.

Citi estimates this will be sufficient to offset the loss of rental income, potentially boosting annualized earnings by about 1%. Furthermore, it is expected to provide greater financial flexibility for the future redevelopment or renovation plans of the Marco Polo Hong Kong Hotel.