New Reporter
24-07-23, 12:11
MCL Land, at 60, presses on with restocking residential land and listening to customers
Teaming up with like-minded partners has been a step change in strategy, allowing the Hongkong Land subsidiary to boost expertise and capacity while mitigating risks
Jul 24, 2023
MCL Land, which turned 60 in March this year, plans to continue focusing on developing Singapore residential projects despite thin profit margins in the sector and a fresh round of cooling measures introduced in April.
The fully-owned subsidiary of Hongkong Land is banking on its proven strategy of selectively buying development land in strategic locations, remaining in tune with the needs of end users, and adapting to changing market environments. It is also greening its footprint and supporting the Singapore government’s sustainability initiatives for the built environment sector.
Predominantly, MCL Land will be tapping Government Land Sales (GLS) to replenish its residential land stock on the island, and the preference will be to carry on teaming up with partners “who share our values and vision”, said chief executive officer Robert Garman.
“We’ll just have to sharpen our pencils a little bit more at GLS (tenders) albeit sensibly, with the right partner, in the right location,” he told The Business Times.
“What’s worked for us quite well, together with our partners, is that rather than having a blanket stab at all the GLS sites, we’ve tried to be more strategic in selecting the sites we want to bid for; and that’s focused ultimately on bettering the built environment for the local communities. So we’re looking at locations that have got excellent infrastructure, in terms of not just transport, but also local amenities and schools.”
MCL Land is the Singapore-focused residential development arm of Hongkong Land, which is a member of the Jardine Matheson Group.
An established player, MCL Land’s projects over the years have included Waterfall Gardens on Farrer Road, Hillcrest Villa along Dunearn Road, The Esta in Amber Gardens, and The Estuary in Yishun overlooking Lower Seletar Reservoir.
Its biggest projects include the 1,404-unit Parc Esta on the former Eunos Ville site, completed in 2022, and the 1,327-unit Sol Acres in Choa Chu Kang, completed in 2018. As far as public-private housing hybrids go, Sol Acres remains Singapore’s biggest executive condominium (EC) development.
MCL Land also has a significant presence in the Jurong Lake District, with three projects completed between 2016 and 2019. Those are J Gateway, LakeVille and Lake Grande, which in total have 2,147 private housing units.
The group currently has four projects under development in Singapore: Piccadilly Grand, Copen Grand, Tembusu Grand and Leedon Green.
Loyal customers
“We’ve found that despite varying market conditions and regulations, our developments remain resilient and in high demand. We have many customers who have remained loyal to our brand,” Garman said.
“While profitability is an important metric for us, there are many other factors that are relevant, including making sure that we are building the right product for our customers, and keeping up with the modern demands of end users to ensure reputational integrity. (These) will continue to stand us in good stead,” he added.
So strong is MCL’s reputation in Singapore that parent company Hongkong Land has kept the brand for its Singapore residential development business instead of using its own branding, Garman said. He is also an executive director of Hongkong Land, responsible for all of its investments and developments in South-east Asia.
“We do have other residential projects around the region – in the Philippines, Vietnam, Indonesia and Thailand. These are all done in joint ventures and under the Hongkong Land brand because it is more recognised outside of Singapore than the MCL brand.”
He added: “Outside of Singapore, MCL Land has a presence only in Malaysia, where it has a legacy land bank in Wangsa Maju, a suburb of Kuala Lumpur. We’ll continue to develop that as and when the market can absorb the supply. Fundamentally, the allocation of all new capital for MCL will be concentrated in Singapore.
“Everything we do relating to commercial property in Singapore is under Hongkong Land.”
Hongkong Land’s first commercial development here was the One Raffles Link office building and the underground CityLink Mall near Esplanade MRT station. The project was developed on a site acquired at an Urban Redevelopment Authority tender in 1996, and completed in 2000.
Hongkong Land went on to take one-third stakes in the consortiums that developed the landmark One Raffles Quay and Marina Bay Financial Centre projects. Its attributable interests in Singapore total nearly 1.8 million square feet of office and retail space in these completed projects.
History
MCL Land has a longer track record in Singapore than its parent does.
It was incorporated in 1963 as Malayan Credit Ltd, with its main business in hire-purchase financing. The company was listed on the Singapore bourse in 1967. A couple of years later, it entered the property development market and eventually turned real estate into its core operation.
In 1992, Cycle and Carriage acquired the company, and in 1997, Malayan Credit Ltd was officially renamed MCL Land. In 2002, Cycle and Carriage became a subsidiary of the Jardine Matheson Group.
Four years later, MCL Land ceased to be a subsidiary of Jardine Cycle and Carriage following a restructuring of its parentage within the Jardine Group, and became a majority-owned subsidiary of Hongkong Land.
In 2011, Hongkong Land privatised MCL Land.
Garman highlighted two areas where MCL has made a step change from a strategic perspective in recent years.
“The first one has been about finding the right partnerships, which has been critical to our growth.”
All four of MCL’s Singapore projects under development are joint ventures. It partnered City Developments Ltd for Piccadilly Grand – which is connected to Farrer Park MRT station – Tembusu Grand in District 15, and the Copen Grand EC project in the upcoming Tengah Town. All three projects are on 99-year leasehold sites.
MCL has also tied up with Yanlord Land to develop Leedon Green, a freehold condominium project.
As at Jul 20, 2023, the 407-unit Piccadilly Grand and 639-unit Copen Grand were fully sold. The 638-unit Leedon Green is 96 per cent sold, and the take-up rate for Tembusu Grand – which also has 638 units – is 58 per cent. The projects are expected to be completed between 2023 (Leedon Green) and 2027 (Tembusu Grand).
“Joint ventures not only give all parties access to an expanded pool of knowledge and expertise, but also increased capacity that partnerships can provide. They also help to mitigate risks,” said Garman.
The second major strategy change MCL has made is “becoming much more responsive to the ever-changing customer needs, which have evolved rapidly over the past few years”, he said.
A recent example is how the Covid pandemic has changed the dynamics of how people use real estate. “The new culture of work from home is unlikely to dissipate, with many employers now offering a policy of allowing staff to work at home one or two days a week,” said Garman.
“So there is more demand for homes and facilities that have space for people to work remotely. We’re looking at ways to affordably maximise space, so people can work from home or a meeting room nearby.”
Tembusu Grand, Piccadilly Grand and Copen Grand will all have co-working spaces.
Motivated to go green
Sustainability is a big priority for MCL, said Garman. “It’s not just about developing an environmentally sustainable product, but one that can be maintained in an energy-efficient manner.”
“It’s something that a lot of our customers spend time asking us about because they want to live in an environment which is greener (and) more sustainable, because the cost of energy these days has become quite an issue, and not just in Singapore.”
MCL Land also supports productivity-enhancing construction methods and efficiency-boosting technology championed by the authorities for the built environment sector.
“We have great belief in the way that Singapore works and the government releases its land,” Garman said. “We think it’s a market that has worked well for us, both on the commercial side under Hongkong Land, and on the residential side under MCL. So it’s a market that we want to continue to deploy capital into.”
https://www.businesstimes.com.sg/companies-markets/mcl-land-60-presses-restocking-residential-land-and-listening-customers
Teaming up with like-minded partners has been a step change in strategy, allowing the Hongkong Land subsidiary to boost expertise and capacity while mitigating risks
Jul 24, 2023
MCL Land, which turned 60 in March this year, plans to continue focusing on developing Singapore residential projects despite thin profit margins in the sector and a fresh round of cooling measures introduced in April.
The fully-owned subsidiary of Hongkong Land is banking on its proven strategy of selectively buying development land in strategic locations, remaining in tune with the needs of end users, and adapting to changing market environments. It is also greening its footprint and supporting the Singapore government’s sustainability initiatives for the built environment sector.
Predominantly, MCL Land will be tapping Government Land Sales (GLS) to replenish its residential land stock on the island, and the preference will be to carry on teaming up with partners “who share our values and vision”, said chief executive officer Robert Garman.
“We’ll just have to sharpen our pencils a little bit more at GLS (tenders) albeit sensibly, with the right partner, in the right location,” he told The Business Times.
“What’s worked for us quite well, together with our partners, is that rather than having a blanket stab at all the GLS sites, we’ve tried to be more strategic in selecting the sites we want to bid for; and that’s focused ultimately on bettering the built environment for the local communities. So we’re looking at locations that have got excellent infrastructure, in terms of not just transport, but also local amenities and schools.”
MCL Land is the Singapore-focused residential development arm of Hongkong Land, which is a member of the Jardine Matheson Group.
An established player, MCL Land’s projects over the years have included Waterfall Gardens on Farrer Road, Hillcrest Villa along Dunearn Road, The Esta in Amber Gardens, and The Estuary in Yishun overlooking Lower Seletar Reservoir.
Its biggest projects include the 1,404-unit Parc Esta on the former Eunos Ville site, completed in 2022, and the 1,327-unit Sol Acres in Choa Chu Kang, completed in 2018. As far as public-private housing hybrids go, Sol Acres remains Singapore’s biggest executive condominium (EC) development.
MCL Land also has a significant presence in the Jurong Lake District, with three projects completed between 2016 and 2019. Those are J Gateway, LakeVille and Lake Grande, which in total have 2,147 private housing units.
The group currently has four projects under development in Singapore: Piccadilly Grand, Copen Grand, Tembusu Grand and Leedon Green.
Loyal customers
“We’ve found that despite varying market conditions and regulations, our developments remain resilient and in high demand. We have many customers who have remained loyal to our brand,” Garman said.
“While profitability is an important metric for us, there are many other factors that are relevant, including making sure that we are building the right product for our customers, and keeping up with the modern demands of end users to ensure reputational integrity. (These) will continue to stand us in good stead,” he added.
So strong is MCL’s reputation in Singapore that parent company Hongkong Land has kept the brand for its Singapore residential development business instead of using its own branding, Garman said. He is also an executive director of Hongkong Land, responsible for all of its investments and developments in South-east Asia.
“We do have other residential projects around the region – in the Philippines, Vietnam, Indonesia and Thailand. These are all done in joint ventures and under the Hongkong Land brand because it is more recognised outside of Singapore than the MCL brand.”
He added: “Outside of Singapore, MCL Land has a presence only in Malaysia, where it has a legacy land bank in Wangsa Maju, a suburb of Kuala Lumpur. We’ll continue to develop that as and when the market can absorb the supply. Fundamentally, the allocation of all new capital for MCL will be concentrated in Singapore.
“Everything we do relating to commercial property in Singapore is under Hongkong Land.”
Hongkong Land’s first commercial development here was the One Raffles Link office building and the underground CityLink Mall near Esplanade MRT station. The project was developed on a site acquired at an Urban Redevelopment Authority tender in 1996, and completed in 2000.
Hongkong Land went on to take one-third stakes in the consortiums that developed the landmark One Raffles Quay and Marina Bay Financial Centre projects. Its attributable interests in Singapore total nearly 1.8 million square feet of office and retail space in these completed projects.
History
MCL Land has a longer track record in Singapore than its parent does.
It was incorporated in 1963 as Malayan Credit Ltd, with its main business in hire-purchase financing. The company was listed on the Singapore bourse in 1967. A couple of years later, it entered the property development market and eventually turned real estate into its core operation.
In 1992, Cycle and Carriage acquired the company, and in 1997, Malayan Credit Ltd was officially renamed MCL Land. In 2002, Cycle and Carriage became a subsidiary of the Jardine Matheson Group.
Four years later, MCL Land ceased to be a subsidiary of Jardine Cycle and Carriage following a restructuring of its parentage within the Jardine Group, and became a majority-owned subsidiary of Hongkong Land.
In 2011, Hongkong Land privatised MCL Land.
Garman highlighted two areas where MCL has made a step change from a strategic perspective in recent years.
“The first one has been about finding the right partnerships, which has been critical to our growth.”
All four of MCL’s Singapore projects under development are joint ventures. It partnered City Developments Ltd for Piccadilly Grand – which is connected to Farrer Park MRT station – Tembusu Grand in District 15, and the Copen Grand EC project in the upcoming Tengah Town. All three projects are on 99-year leasehold sites.
MCL has also tied up with Yanlord Land to develop Leedon Green, a freehold condominium project.
As at Jul 20, 2023, the 407-unit Piccadilly Grand and 639-unit Copen Grand were fully sold. The 638-unit Leedon Green is 96 per cent sold, and the take-up rate for Tembusu Grand – which also has 638 units – is 58 per cent. The projects are expected to be completed between 2023 (Leedon Green) and 2027 (Tembusu Grand).
“Joint ventures not only give all parties access to an expanded pool of knowledge and expertise, but also increased capacity that partnerships can provide. They also help to mitigate risks,” said Garman.
The second major strategy change MCL has made is “becoming much more responsive to the ever-changing customer needs, which have evolved rapidly over the past few years”, he said.
A recent example is how the Covid pandemic has changed the dynamics of how people use real estate. “The new culture of work from home is unlikely to dissipate, with many employers now offering a policy of allowing staff to work at home one or two days a week,” said Garman.
“So there is more demand for homes and facilities that have space for people to work remotely. We’re looking at ways to affordably maximise space, so people can work from home or a meeting room nearby.”
Tembusu Grand, Piccadilly Grand and Copen Grand will all have co-working spaces.
Motivated to go green
Sustainability is a big priority for MCL, said Garman. “It’s not just about developing an environmentally sustainable product, but one that can be maintained in an energy-efficient manner.”
“It’s something that a lot of our customers spend time asking us about because they want to live in an environment which is greener (and) more sustainable, because the cost of energy these days has become quite an issue, and not just in Singapore.”
MCL Land also supports productivity-enhancing construction methods and efficiency-boosting technology championed by the authorities for the built environment sector.
“We have great belief in the way that Singapore works and the government releases its land,” Garman said. “We think it’s a market that has worked well for us, both on the commercial side under Hongkong Land, and on the residential side under MCL. So it’s a market that we want to continue to deploy capital into.”
https://www.businesstimes.com.sg/companies-markets/mcl-land-60-presses-restocking-residential-land-and-listening-customers