Hongkong Land has divested its Singaporean and Malaysian residential development business MCL Land to Malaysian property conglomerate, Sunway Group, at the net asset value of S$739m (€488m).
MCL Land has been a leading residential developer in Singapore and Malaysia for more than 60 years.
The sale is part of the Hong Kong property company’s 2035 strategic vision to recycle capital by exiting the residential build-to-sell segment and to focus growth on “ultra-premium” integrated commercial properties in Asian gateway cities.
Michael Smith, Hongkong Land CEO, 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 30 years.
“This transaction sees us continue to sharpen our portfolio focus and recycle capital into what we do best, which is developing and managing ultra-premium integrated commercial properties in Asian gateway cities. We will keep investing in the unique, world-class commercial property assets we have in Singapore, a market that is central to Hongkong Land’s future as we deliver on our strategic vision.”
Sunway Group executive deputy chair Sarena Cheah said: “This acquisition marks a decisive expansion of our footprint in one of Asia’s most competitive property markets. With 20 years of property experience in Singapore, coupled with our recent investments, it underscores our confidence in Singapore’s long-term fundamentals and our commitment to scale with purpose.”
Cheah added: “This is not just a transaction; it’s a strategic alignment that positions us to shape the future of integrated development and urban living in Southeast Asia.”
Post-transaction the MCL management team will continue to run the business and ongoing projects.
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