Hongkong Land to exit build-to-sell business, pivot to fund management

Hongkong Land will exit the build-to-sell residential development business as it pivots towards fund management and focuses on ultra-premium integrated commercial properties in Asia's gateway cities.

Announcing its new business strategy on Oct 29, the 135-year-old listed property group, which is part of the giant Jardine Matheson conglomerate, said this will reinforce its core capabilities, generate growth in long-term recurring income, and deliver superior returns to shareholders.

The group intends to recycle up to US$10 billion (S$13.2 billion) in assets by 2035 and grow assets under management from US$40 billion today to up to US$100 billion by then. It expects to double its profit before interest and tax, and double dividends per share in that time.

In an interview with The Business Times, Mr Michael Smith, chief executive of Hongkong Land, said: "The core competencies of Hongkong Land lie in integrated complexes and that's why we want to pivot that way.