REG - Hongkong Land Hldgs - Divest MCL Land & extension of buyback programme

Hongkong Land HoldingsAnnouncement

18/09/2025 10:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250918:nRSR8908Za&default-theme=true

RNS Number : 8908Z  Hongkong Land Hldgs Ltd  18 September 2025

Announcement

 

18 September 2025

The following announcement was issued today to a Regulatory Information
Service approved by the Financial Conduct Authority in the United Kingdom.

HONGKONG LAND HOLDINGS LIMITED

HONGKONG LAND TO DIVEST MCL LAND TO SUNWAY GROUP AND INCREASE SIZE OF SHARE BUYBACK PROGRAMME
Overview

Hongkong Land Holdings Limited ('Hongkong Land' or the 'Company') announces
today that it has entered into an agreement to divest its MCL Land residential
development business (the 'MCL Group'), to Sunway Labuan Investment Ltd (a
wholly-owned member of Sunway Berhad, the leading Malaysia-headquartered
property developer) ('Sunway') (the 'Transaction') by way of a share sale.

The sale advances Hongkong Land's 2035 strategic vision to recycle capital by
exiting the residential build-to-sell segment and focusing on ultra-premium
integrated commercial properties in Asian gateway cities. With this
Transaction, the total capital recycled by Hongkong Land since 2024 has grown
to USD 2 billion, representing 50% of the Company's target of at least USD 4
billion by end of 2027.

Principal Terms

A summary of the principal terms of the Transaction is as follows:

(i)       Transaction proceeds: SGD739m (USD579m).

 

(ii)      Buyer: Sunway.

 

(iii)   Subject Business: the entire Singapore and Malaysia residential
development business operated by MCL Group (which is inclusive of its joint
venture interests). The business currently has 6 residential developments
under construction, the majority of which are pre-sold. The subject business
also includes a retail mall for lease (the Wangsa Walk Mall) operated by MCL
Land in Kuala Lumpur. The Transaction does not affect MCL Land's operations or
the employment of existing MCL staff who will remain in the MCL Group
business.

 

(iv)     Conditions Precedent & Closing: The Transaction is subject to
ordinary course conditions precedent, including routine third-party consents
from existing partners. The Transaction is also conditional on no material
adverse event arising (with respect to the business environment that the MCL
Group operates as well as in relation to certain confirmatory due diligence
items) prior to closing, which is expected to take place prior to the end of
this year.

Valuation Analysis and Financial Impact

The total sale proceeds of SGD739m (USD579m) is based on the net asset value
of the MCL Group as at 31 August 2025. The purchase price was determined after
arm's length negotiations between the parties and will be settled in cash.

Use of Proceeds and Share Buyback

The proceeds from the Transaction will be used to i) reduce net debt, further
strengthening Hongkong Land's balance sheet and reducing net financing
charges, and ii) increase the size of the Company's share buyback programme by
an additional US$150 million (reflecting c. 20% of the total sale proceeds and
other recycled capital). The US$200 million share buyback announced in April
2025 is currently 90% invested and will continue alongside this additional
amount. The buyback programme will continue in accordance with the Company's
existing authorities and applicable regulations. The buyback programme will
extend through to 31 December 2026.

About Hongkong Land

Hongkong Land is a major listed property investment, management and
development group.  Founded in 1889, it is a market leader in the development
of experience-led city centres that unlock value for generations by combining
innovation, placemaking, exceptional hospitality and sustainability. The Group
focuses on developing, owning and managing ultra-premium mixed-use real estate
in Asian gateway cities, featuring Grade A office, luxury retail, residential
and hospitality products. Its mixed-use real estate footprint spans more than
850,000 sq. m., with flagship projects in Hong Kong, Singapore and Shanghai.
Its properties hold industry-leading green building certifications and attract
the world's foremost companies and luxury brands.

Hongkong Land Holdings Limited is incorporated in Bermuda and has a primary
listing in the equity shares (transition) category of the London Stock
Exchange, with secondary listings in Bermuda and Singapore. Hongkong Land is a
member of the Jardine Matheson Group.

About the Sunway Group

Founded in 1974, Sunway Group is one of Southeast Asia's leading
conglomerates. Sunway's dedicated 20,000-strong team drives sustainable
development and socio-economic progress across diverse sectors, including core
interests in real estate, construction, healthcare, education, leisure,
retail, and hospitality.

 

 

end -

For further information, please contact:

 Mark Lam                           (852) 2842 8211
 Gary Leung                         (852) 2842 0601
 Louise Corbett                     (852) 2842 8541
 William Brocklehurst (SECNewgate)  (852) 6021 8313

This and other Group announcements can be accessed via the Hongkong Land
corporate website at 'www.hkland.com'.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCMZGMLLRLGKZG