Singapore's Hongkong Land to wind down build-to-sell division (updated)
29/10/2024 10:17
(Updates with further details on divestment from paragraph 2
onwards)
Oct 29 (Reuters) - Singapore's Hongkong Land Holdings
HKLD.SI on Tuesday said it will wind down its build-to-sell
division to focus exclusively on investment properties in key
Asian cities and redirect capital into integrated commercial
property opportunities.
Hongkong Land, which expects to raise proceeds worth $6
billion from the divestment, said the new plan will leverage its
established flagship prime mixed-use projects in Hong Kong,
Singapore and Shanghai.
The company aims to double underlying profit before
interest, tax and dividends by 2035, while diversifying
geographically and growing assets under management to $100
billion, including significant third-party capital.
It will seek to limit a single city's contribution to
its profit to not more than 40% and actively recycle up to $10
billion in capital by 2035 to drive growth and optimization, it
said.
"Given the size and diversity of the Group’s existing
real estate portfolio, the new strategy is expected to take a
number of years, with progress to be measured across three
implementation phases," Chief Executive Michael Smith said in a
statement.
(Reporting by Sherin Sunny in Bengaluru; Editing by Sonia
Cheema and Mrigank Dhaniwala)
((Sherin.Sunny@thomsonreuters.com;))