Sunway Group to buy Hongkong Land’s property arm MCL Land for S$738.7 million

[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.

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”.

Hongkong Land chief executive Michael Smith 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, with a strong brand known for quality and a robust residential development pipeline.”

He added: “With the backing of Sunway, 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. 

Sarena Cheah, Sunway’s executive deputy chairman, said the acquisition “marks a decisive expansion of our footprint in one of Asia’s most competitive property markets”, adding that the move underscores the group’s “confidence in Singapore’s long-term fundamentals and our commitment to scale with purpose”.

All MCL Land’s ongoing development projects will continue, providing Sunway with immediate earnings visibility, Sunway said.

Five of MCL Land’s ongoing projects are based in Singapore; these comprise about 2,700 development units worth some S$2.9 billion in gross development value. It also has three in Malaysia, including Wangsa Walk Mall – which has a net leasable area (NLA) of 330,000 sq ft – and development land banks 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, 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 then that the group would 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,” he had said. 

According to HongKong Land’s website, it has 9.2 million sq ft of NLA, 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 its 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 Jun 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 was 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 remaining shares and subsequently delisted the property company from the Singapore Exchange.