sunway Group Acquires Singapore’s MCL Land for $578 Million
SINGAPORE – September 18, 2024 – Malaysian conglomerate Sunway Group, led by billionaire Jeffrey Cheah, is expanding its presence in Singapore’s real estate market with the acquisition of developer MCL Land for S$739 million ($578 million) from Hongkong Land Holdings. The deal, announced today, signals a deepening commitment to investment in one of Asia’s most stable property markets.
“This acquisition marks a decisive expansion of our footprint in one of Asia’s most competitive property markets,” stated Sarena Cheah, executive deputy chairman of Kuala Lumpur-based Sunway, in a press release.
Sunway has recently increased its Singapore investments, following a successful bid last month – alongside partner sing Holdings - for a residential site in Chuan Grove, northeastern singapore, at S$623.9 million. The company intends to combine the Chuan Grove sites into a single integrated advancement comprising 1,055 units across five 27-story residential towers, representing a total investment of S$1.3 billion for the plots.
“Our recent investments,including the Chuan Grove sites,underscores our confidence in Singapore’s long-term fundamentals and our commitment to scale with purpose,” added Sarena Cheah,daughter of Sunway founder and executive chairman Jeffrey Cheah.
The acquisition of MCL Land is expected to provide Sunway with “a robust platform to accelerate growth not only in singapore but across key regional markets,” Sarena Cheah noted. The transaction is anticipated to be finalized by the end of the year, pending standard closing conditions.
Hongkong Land intends to use the proceeds from the divestment to strengthen its balance sheet and focus on its core business. ”This transaction sees us continue to sharpen our portfolio focus and recycle capital to what we do best, which is developing and managing ultra-premium integrated commercial properties in Asian gateway cities,” said michael Smith, chief executive of Hongkong Land.
Sunway Group, originally a tin-mining company, has been transformed under Jeffrey Cheah’s leadership over five decades into a major Malaysian conglomerate with diverse interests including construction, education, healthcare, infrastructure, and real estate. Cheah currently has a net worth of $4.3 billion, ranking him among Malaysia’s wealthiest individuals.