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SINGAPORE/LONDON - Hongkong Land Holdings Limited announced Thursday it has agreed to sell its MCL Land residential development business to Malaysia’s Sunway Group for SGD739 million (USD579 million) as part of its strategy to exit the residential build-to-sell segment.
The transaction, expected to close before year-end, involves MCL Group’s entire Singapore and Malaysia residential development operations, including six residential developments currently under construction and the Wangsa Walk Mall in Kuala Lumpur.
The sale advances Hongkong Land’s 2035 strategic vision to focus on ultra-premium integrated commercial properties in Asian gateway cities. With this divestment, Hongkong Land has recycled approximately USD2 billion in capital since 2024, representing 50% of its target to recycle at least USD4 billion by the end of 2027.
According to the company’s statement, the sale price reflects the net asset value of MCL Group as of August 31, 2025, and was determined after arm’s length negotiations between the parties. The transaction will be settled in cash.
Hongkong Land plans to use the proceeds to reduce net debt and expand its share buyback program by an additional USD150 million. The company’s existing USD200 million buyback program announced in April 2025 is currently 90% complete and will continue alongside this additional amount through December 31, 2026.
The transaction is subject to standard conditions precedent, including routine third-party consents from existing partners and no material adverse events occurring before closing.
Hongkong Land, founded in 1889, is listed on the London Stock Exchange with secondary listings in Bermuda and Singapore. The company’s mixed-use real estate portfolio spans more than 850,000 square meters across Asian gateway cities.
Sunway Group, established in 1974, operates across various sectors including real estate, construction, healthcare, education, leisure, retail, and hospitality in Southeast Asia.
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