KUALA LUMPUR, Sept 19, 2025 – Sunway Bhd (KLSE: 5211) has announced its largest acquisition to date, agreeing to acquire the entire residential development business of MCL Land from Hongkong Land Holdings Ltd (SGX: H78) in a deal valued at S$738.7 million (approximately RM2.4 billion).

The purchase marks a strategic expansion for Sunway into Singapore’s highly competitive property market, while providing Hongkong Land with significant capital recycling as part of its ongoing restructuring strategy.

Key Deal Highlights

Transaction Value: RM2.4 billion (S$738.7 million).

Scope of Acquisition: Includes MCL Land’s Singapore and Malaysia residential development business, ongoing projects, income-generating assets, and land banks.

Completion Timeline: Targeted before the end of 2025.

What Sunway Gains

Singapore Pipeline Expansion
Boosts unbilled sales in Singapore from S$614 million to around S$1.8 billion.
Adds approximately 2,700 residential units across five projects with a total gross development value (GDV) of S$2.9 billion.

Recurring Income Assets
Sunway acquires Wangsa Walk Mall (Kuala Lumpur) with a 99% occupancy rate, generating a healthy yield of 6.4%.

Strategic Land Banks
Includes parcels in Wangsa Maju (Kuala Lumpur) and Forest Heights (Seremban), strengthening its development pipeline in Malaysia.

Market Positioning
Reinforces Sunway’s mixed-use and sustainable development expertise while granting it a stronger foothold in Singapore’s property sector.

Why Hongkong Land is Selling

Hongkong Land, the Singapore-listed property investment, management, and development group, has been gradually exiting the residential development segment. The sale of MCL Land forms part of its strategy to recycle US$2 billion in capital by 2027 (halfway towards its US$4 billion target).

The company has stated that proceeds will go toward balance sheet strengthening and share buybacks, signaling a shift towards a leaner investment-focused model.

Market Implications

For Sunway (KLSE: 5211):
A bold bet on Singapore’s high-demand but limited-supply housing market.
Enhances recurring income sources, diversifies revenue, and supports long-term growth.

For Hongkong Land (SGX: H78):
Frees up capital for reinvestment and shareholder returns.
Continues realignment away from development risk towards investment assets.

FAQs

1. Who is MCL Land?
MCL Land is a Singapore-based residential developer with operations in Singapore and Malaysia, fully owned by Hongkong Land before this deal.

2. How much is the acquisition worth?
The transaction is valued at S$738.7 million (RM2.4 billion).

3. What does Sunway gain from this acquisition?
Sunway gains 2,700 residential units across five projects in Singapore, unbilled sales of S$1.8 billion, recurring income from Wangsa Walk Mall, and land banks in Malaysia.

4. Why is Hongkong Land selling MCL Land?
Hongkong Land is recycling capital as part of its strategy to exit residential development and strengthen its balance sheet.

5. When will the deal be completed?
The acquisition is expected to be finalized by the end of 2025, subject to regulatory approvals.

6. How will this affect Sunway’s shareholders?
If executed well, the deal could enhance Sunway’s long-term earnings through greater exposure to Singapore’s property market and new recurring income streams.