- Sold MCL Land at book value – Hongkong Land (SGX:H78) agreed to divest its wholly-owned subsidiary MCL Land – a leading residential real estate developer in Singapore and Malaysia – to Malaysia-based Sunway Group.
- - Read this at SGinvestors.io -
Accelerating return of capital.
- Established in 1963, MCL Land has developed 48 residential projects and one retail mall since 1992. Currently, MCL Land is developing six residential projects, which have been mostly pre-sold.
- We view this transaction as mutually beneficial. On one hand, this allows Hongkong Land to accelerate its return of capital. On the other hand, Sunway is committed to growing the brand and platform alongside the MCL Land team.
Improved gearing and upsized share buyback programme.
- - Read this at SGinvestors.io -
- Subsequently, Hongkong Land will upsize its share buyback programme by an additional US$150m, extending through to end-2026. This will be funded by a combination of net proceeds from the sale of MCL Land and capital recycled from other assets.
- Since the company commenced the existing US$200m share buybacks programme in late April, Hongkong Land has repurchased 31.6m shares for US$178m or US$5.63 per share on average.
Continued focus on growing property presence in Singapore.
- Read more at SGinvestors.io.
