[SINGAPORE] Real estate group Hongkong Land Holdings will sell its Singapore and Malaysian property arm MCL Land to Malaysia’s Sunway group for S$738.7 million, the companies said on Thursday (Sep 18).
This transaction marks Sunway’s largest deal to date, lifting the group’s Singapore investment to more than S$1.2 billion since July 2025.
In a statement, Sunway said it will assume ownership of MCL Land and its subsidiaries, including ongoing development projects in Singapore as well as its portfolio of income-generating and development assets in Malaysia.
All MCL Land’s ongoing development projects will continue, providing Sunway with immediate earnings visibility from ongoing MCL Land projects, Sunway said.
Michael Smith, Hongkong Land chief executive, said: “Since announcing our new strategy last October, we have looked for the right steward for MCL Land and its people. This is a business Hongkong Land has grown for over thirty years, with a strong brand known for quality and a robust residential development pipeline. With the backing of Sunway Group, MCL Land’s seasoned team will continue delivering exceptional homes for people and communities across Singapore and Malaysia.”
In October last year, Hongkong Land said it was exiting the residential development business as it pivots towards fund management and focuses on ultra-premium integrated commercial properties in Asia’s gateway cities.
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Sunway Group executive deputy chairman Sarena Cheah said: “This acquisition marks a decisive expansion of our footprint in one of Asia’s most sites, underscore our confidence in Singapore’s long-term fundamentals and our commitment to scale with purpose.”
The combined portfolio provides immediate profit contribution for Sunway from ongoing MCL Land projects, five of which are based in Singapore. These comprise about 2,700 development units worth some S$2.9 billion in gross development value, and another three in Malaysia, including Wangsa Walk Mall (NLA 330,000 sq ft) and development landbanks in Wangsa Maju and Forest Heights, Seremban.
Hongkong Land is aiming to expand its assets under management from US$40 billion to US$100 billion by 2035, much of which will be owned by third-party capital. The new model is expected to double profits and dividends.
In an interview with The Business Times last year, Hongkong Land chief executive Michael Smith said: “The ideal situation is that we become a much more investment property-oriented, high-quality income company.”
Chief financial officer Craig Beattie added that the group will work closely with third-party capital.
“(This could be) a combination of perhaps a listed platform like a Reit (real estate investment trust) which we may look to establish. We are also going to work with or create private funds,” Beattie had said.
According to HongKong Land’s website, it has 9.2 million sq ft of net leasable area and 4.3 million sq ft of area currently under construction or to be developed.
As at Dec 31, 2024, development properties accounted for around 17 per cent of gross assets, and investment properties the remaining 83 per cent.
The group’s development properties also contributed around US$126 million in operating profit, or around 12 per cent of total operating profit, in that year.
In the latest half year ended June 30, Hongkong Land’s build-to-sell segment posted a net profit of US$68 million, reversing from a S$269.5 million loss in the year-ago period.
The group added that it was no longer deploying capital into new build-to-sell projects and was focused on winding down its existing inventory.
Net investment in this segment was US$7.3 billion, down S$0.5 billion from the end of 2024. In H1 2025, US$0.2 billion in net cash proceeds were also recycled out of the segment.
Current residential developments under MCL Land include Nava Grove, Elta and Tembusu Grand in Singapore. It also has one residential project in Kuala Lumpur and another two in the pipeline. Other previously completed condominiums in Singapore include Copen Grand, Piccadilly Grand and Leedon Green.
Founded in 1889, Hongkong Land has a primary listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore.
The group acquired a majority stake in MCL Land for around US$307 million in 2006. In 2011, it made a compulsory acquisition of all the remaining shares and subsequently delisted the property company from the Singapore Exchange.
