Fri Nov 15 15:10:38 IST 2024: ## Hongkong Land Shifts Focus, Divesting Build-to-Sell Division for USD 6 Billion
**Singapore, [Date]** – Hongkong Land Holdings, headquartered in Singapore, announced a strategic shift away from its build-to-sell division, focusing solely on investment properties in key Asian markets. This move will see the company divest its residential development arm, generating an estimated USD 6 billion in capital. This capital will be reinvested in its flagship mixed-use projects in Hong Kong, Singapore, and Shanghai.
The company aims to double its underlying profit by 2035, driven by diversification and strategic asset management. Hongkong Land plans to expand its assets under management to USD 100 billion, including substantial third-party capital, while limiting the contribution of any single city to its profits to a maximum of 40%. The company also intends to recycle up to USD 10 billion in capital by 2035 for further growth and optimization.
“Given the size and diversity of our existing real estate portfolio, the implementation of this new strategy will be a gradual process,” said Michael Smith, Chief Executive of Hongkong Land. The transition will be monitored across three distinct phases over the coming years.
This strategic pivot marks a significant transformation for Hongkong Land, moving from a focus on residential development to investment properties. The company’s ambition to double profits by 2035, coupled with a commitment to diversification and capital recycling, positions it for long-term sustainability and growth in the evolving Asian real estate market.
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