Sunway Group to buy Hongkong Land’s property arm MCL Land for $738.7 million
Sunway Group to buy MCL Land from Hongkong Land for $738.7 million
Real estate group Hongkong Land Holdings will sell its Singapore and Malaysia property arm MCL Land to Malaysia’s Sunway Group for $738.7 million. Both companies announced the deal on Sept 18.
The acquisition is Sunway’s largest to date and lifts its total investment in Singapore to more than $1.2 billion since July. Sunway will take ownership of MCL Land and its subsidiaries, including all ongoing projects in Singapore and a portfolio of income producing and development assets in Malaysia. Sunway said all ongoing MCL Land projects will continue, giving the group immediate earnings visibility.
Hongkong Land chief executive Michael Smith said the company sought the right steward for a business it has built over more than 30 years, and that MCL Land’s team would continue delivering quality homes in Singapore and Malaysia with Sunway’s backing.
Hongkong Land announced in October 2024 that it would exit residential development as it pivots to fund management and focuses on ultra premium integrated commercial properties in Asia’s gateway cities. Sunway executive deputy chairwoman Sarena Cheah said the acquisition reflects confidence in Singapore’s fundamentals and a commitment to scale.
MCL Land has five ongoing projects in Singapore comprising about 2,700 units with an estimated gross development value of about $2.9 billion. In Malaysia, it has three ongoing assets and projects, including Wangsa Walk Mall with a net lettable area of 330,000 square feet, and land banks in Wangsa Maju and Forest Heights in Seremban. Current Singapore developments include Nava Grove, Elta and Tembusu Grand. Past projects include Copen Grand, Piccadilly Grand and Leedon Green. The company also has one residential project in Kuala Lumpur and two more in the pipeline.
Hongkong Land is targeting growth in assets under management from US$40 billion to US$100 billion by 2035, with a larger share owned by third party capital. The group expects the new model to double profits and dividends. In a 2024 interview, Mr Smith said the aim is to become a more investment property oriented, high quality income company. Chief financial officer Craig Beattie said the group plans to work closely with third party capital, potentially through a listed platform such as a real estate investment trust and through private funds.
According to Hongkong Land’s website, the group has 9.2 million square feet of net lettable area and 4.3 million square feet under construction or slated for development. As at Dec 31, 2024, development properties made up about 17 per cent of gross assets and investment properties about 83 per cent. Development properties contributed about US$126 million in operating profit in 2024, or about 12 per cent of the total. For the half year ended June 30, the build to sell segment recorded net profit of US$68 million, reversing a US$269.5 million loss a year earlier. The group said it is no longer deploying capital into new build to sell projects and is winding down its remaining inventory. Net investment in this segment stood at US$7.3 billion, down US$0.5 billion from end 2024, and US$0.2 billion in net cash was recycled out of the segment in the first half of 2025.
Founded in 1889, Hongkong Land has a primary listing in London, with secondary listings in Bermuda and Singapore. It acquired a majority stake in MCL Land for about US$307 million in 2006, completed a compulsory acquisition in 2011 and delisted MCL Land from the Singapore Exchange.
