Hongkong Land (HKL) has made a landmark commitment to China, unveiling West Bund Central in Shanghai — the group’s largest single investment to date, valued at US$11.5 billion. While HKL has traditionally been associated with prime office spaces in Hong Kong and Singapore, this move signals a deeper shift toward China’s high-end real estate market.
West Bund Central will feature 3 million sq m of mixed-use development, including 240,000 sq m of retail, 650,000 sq m of Grade A offices, 160,000 sq m of waterfront luxury residences, two Mandarin Oriental hotels, and cultural venues. “This is HKL’s largest-ever single investment and underlines our commitment to Shanghai and China,” said group CEO Michael Smith at the Nov 28, 2024 launch.
The development’s first phases have already seen success, with 97% of apartments in The Central Residences West Bund leased and retail outlets focusing on wellness already operational. The mega-project will also include Asia’s first Landmark Retail Avenue and The Bund Collection of 180 F&B outlets.
HKL chairman John Witt highlighted that these luxury residences sold at some of the highest prices in Shanghai’s primary market. Completion of additional project phases is scheduled between 2025 and 2027.
Beyond Shanghai, HKL is investing US$400 million in upgrading its Landmark retail portfolio in Hong Kong, with tenants committing an additional US$600 million.
As part of its broader strategy, HKL announced capital recycling plans targeting US$10 billion by 2035. The group plans to divest US$6 billion in assets by 2027, including US$2.5 billion in build-to-sell developments in China and US$3 billion in non-core Chinese retail assets.
The group has already monetised US$290 million in China through successful residential projects and asset sales, with proceeds reducing debt by 5% and raising dividends by 6%. Smith noted that up to 20% of recycled capital will fund share buybacks.
Additionally, HKL has strengthened its leadership team with the appointment of Michelle Ling as chief investment officer. Ling was previously instrumental in Cuscaden Peak’s privatization efforts while at Mapletree Investments.
HKL remains committed to expanding in Hong Kong, Singapore, and Shanghai, aiming to grow assets under management to US$100 billion by 2035. Smith concluded, “Our focus is on prime investment property assets in Asia’s gateway cities, underpinned by active capital recycling and third-party capital initiatives.”
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