Sunway buys MCL Land for RM2.4 bil from Hongkong Land

• Sunway 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.

SINGAPORE (Sept 18): Sunway Group is paying S$738.7 million (RM2.4 billion) deal to buy the Singaporean and Malaysian residential development business MCL Land from Hongkong Land Holdings.

This deal marks the Malaysian conglomerate's largest deal to date, and will lift its Singapore investment to more than S$1.2 billion since July.

Sunway 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.

All MCL Land’s ongoing development projects will continue, providing Sunway with immediate earnings visibility from ongoing MCL Land projects. It will increase its unbilled sales in Singapore from S$614 million to almost S$1.8 billion.

“This acquisition marks a decisive expansion of our footprint in one of Asia’s most competitive property markets. Our recent investments, including the Chuan Grove sites, underscore our confidence in Singapore’s long-term fundamentals and our commitment to scale with purpose," says Sunway Group's executive deputy chairman Datin Paduka Sarena Cheah.

“By integrating MCL Land’s deep market expertise with Sunway’s track record in sustainable, mixed-use developments, we are building a robust platform to accelerate growth, not only in Singapore but across key regional markets.

"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," she added.

Hongkong Land's possible sale of MCL Land was first reported last December. Back then, Hongkong Land was reportedly looking to sell at a premium to MCL's book value of US$1.1 billion.

The sale is part of Hongkong Land's refined strategy to forgo residential development and focus more on investment properties, as part of a broader move to communicate aspirations for better returns to shareholders via asset monetisation, raising dividends and doubling profits as well as undertake share buy-backs.

With this transaction, the total capital recycled by Hongkong Land since 2024 has grown to US$2 billion, which is 50% of the company’s target of at least US$4 billion by end of 2027.

The proceeds from the transaction will be used to further strengthen Hongkong Land’s balance sheet and contribute an additional US$150 million to the company’s ongoing share buy-back programme.

"This is a business Hongkong Land has grown for over thirty years, with a strong brand known for quality and a robust residential development pipeline," says Hongkong Land chief executive officer Michael Smith.

"With the backing of Sunway Group, MCL Land’s seasoned team will continue delivering exceptional homes for people and communities across Singapore and Malaysia.”

Following the sale, Sunway gains immediate access to a diversified pipeline of developments in Singapore.

The agreement also enhances Sunway’s recurring income via Wangsa Walk Mall in Malaysia (99% occupancy as of June 30, 2025, with a projected net property income yield of 6.4%), underpinned by stable occupancy and asset enhancement opportunities.

In addition, MCL Land’s land bank in Wangsa Maju and the Forest Heights township in Seremban complement Sunway’s expertise as a community developer.

The combined portfolio provides immediate profit contribution from ongoing MCL Land projects, five of which are based in Singapore, comprising approximately 2,700 development units worth some S$2.9 billion in gross development value, and another three in Malaysia, including Wangsa Walk Mall (net lettable area: 330,000 sq ft) and development land bank in Wangsa Maju and Forest Heights, Seremban.

The completion of the agreement is subject to standard closing conditions. This transaction is expected to close before the end of 2025.

Hongkong Land shares closed at US$6.65 on Thursday, up 50.1% year to date; Bursa Malaysia-listed Sunway Bhd (KL:SUNWAY) closed at RM5.35, up 13.11% year to date.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.