Hongkong Land’s capital recycling tops US$4.2 billion, beating 2027 target

[SINGAPORE] on Friday (Nov 13) said it has recycled over US$4.2 billion in capital since 2024, exceeding its minimum US$4 billion target, and ahead of its end-2027 deadline.

The total includes about US$500 million in expected proceeds from agreements signed in 2026 to sell selected interests in Cambodia, the Philippines and Thailand.

The sale of the group’s 49 per cent stake in the development of the former British embassy site in Bangkok contributed the bulk of the capital recycled during this period, said the real estate arm of the Jardine Matheson group.

It noted that the deals were agreed at market value and at or around the carrying value of the investments.

The disposals and other capital recycling activities have enabled Hongkong Land to add US$100 million to its share-buyback programme, bringing the total allocated for this since October 2024 to US$750 million. Of that sum, the company has invested US$508.5 million to date.

The programme has been extended to Dec 31, 2027 from Jun 30, 2027. The pace of repurchases will remain at the company’s discretion and depend on market conditions.

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Michael Smith, group CEO of Hongkong Land, said: “This progress reflects our deliberate efforts to sharpen our portfolio focus, streamline our geographic footprint and concentrate capital and resources where we see the greatest opportunities to create long-term value.”

He added: “We have further strengthened our balance sheet, providing greater flexibility to invest in our core portfolios and pursue disciplined growth in Asian gateway cities.”

Hongkong Land is sharpening its focus on its commercial property portfolio and investments in core Asian gateway markets, namely Hong Kong, Singapore and mainland China.

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Under its Strategic Vision 2035, Hongkong Land aims to recycle up to US$10 billion of capital by 2035. It intends to fund growth in its ultra-premium commercial property portfolios and enhance shareholder returns, with a greater proportion to be realised in the short to medium term.

In February, the group launched Singapore Central Private Real Estate Fund (SCPREF) – the largest commercial real estate private fund in the city-state and a key part of its growth strategy.

Hongkong Land previously injected its one-third interests in Marina Bay Financial Centre (MBFC) Towers 1 and 2, Marina Bay Link Mall and One Raffles Quay into the fund.

In July, the fund agreed to buy Wheelock Place, now known as Landmark Orchard, from Wharf Real Estate Investment Company for about S$1.1 billion. This deal was the fund’s first acquisition.

While Hongkong Land has not disclosed specific plans for this Singapore property, it said it would look to “enhance the mall by drawing on its experience investing in and managing premium commercial properties across Asia”.

Shares of Hongkong Land ended 1.6 per cent or US$0.13 lower at US$8.22.