SINGAPORE, Sunway Group has agreed to acquire MCL Land, the residential property development arm of Hongkong Land Holdings, in a deal worth S$738.7 million (RM2.4 billion) — the largest transaction in Sunway’s history.
The purchase will bring Sunway’s total investment in Singapore to more than S$1.2 billion since July and significantly expand its exposure to one of Asia’s most competitive property markets.
Under the agreement, Sunway will assume control of MCL Land and its subsidiaries, which include ongoing residential projects in Singapore and income-generating as well as development assets in Malaysia.
From left: Sunway Group executive deputy chair Datin Paduka Sarena Cheah, Sunway Property managing director Chung Soo Kiong, Sunway Group founder and chairman Tan Sri Dr Jeffrey Cheah, Hongkong Land CEO Michael Smith and Hongkong Land executive director and general counsel John Simpkins.
With this acquisition, Sunway’s unbilled sales in Singapore will nearly triple from S$614 million to close to S$1.8 billion, providing immediate earnings visibility from MCL Land’s existing pipeline of projects.
“This marks a pivotal expansion of our presence in Singapore. Our recent land acquisitions, including the Chuan Grove sites, reflect our confidence in the city-state’s fundamentals and our intent to scale with purpose,” said Sunway Group executive deputy chairman Datin Paduka Sarena Cheah.
“By combining MCL Land’s strong market expertise with Sunway’s track record in sustainable, mixed-use townships, we are creating a platform to accelerate growth across Singapore and other key regional markets. This is more than a transaction — it’s a strategic alignment to shape the future of urban living in Southeast Asia,” she added.
Hongkong Land’s decision to divest MCL Land was first reported in December 2024. The move forms part of its strategy to shift away from residential development and focus on investment properties, while strengthening shareholder returns through asset monetisation, higher dividends, profit growth, and share buy-backs.
Since the start of 2024, Hongkong Land has recycled around US$2 billion in capital, meeting half of its target of at least US$4 billion by end-2027. Proceeds from the MCL Land sale will reinforce its balance sheet and contribute an additional US$150 million to its ongoing share repurchase programme.
“MCL Land has been a core business for over three decades, with a strong reputation for quality and a solid pipeline,” said Hongkong Land chief executive officer Michael Smith. “With Sunway’s backing, its experienced team will continue delivering exceptional residential projects across Singapore and Malaysia.”
The acquisition will also enhance Sunway’s recurring income streams via Malaysian assets such as Wangsa Walk Mall in Kuala Lumpur — currently 99% occupied with a projected net property income yield of 6.4% — and land banks in Wangsa Maju and Forest Heights township in Seremban.
MCL Land’s development portfolio consists of five residential projects in Singapore with approximately 2,700 units and a combined gross development value of about S$2.9 billion, along with three assets in Malaysia, including the Wangsa Walk Mall and development lands. The deal is subject to standard closing conditions and is expected to be completed by the end of 2025.
Hongkong Land shares ended Thursday at US$6.65, up 50.1% year to date, while Sunway Bhd closed at RM5.35, marking a 13.1% gain so far this year.
