Hong Lai Huat To Sell Two Subsidiaries in Cambodia at US$37.5 Million & Exit from Agricultural Ventures

• Sommana Yan
• 7 February 2024
• Local News
• 2404 Views

Singaporean property developer Hong Lai Huat has announced plans to divest two underperforming subsidiaries in Cambodia, marking its departure from the agricultural sector. The proposed disposal, with a total consideration of US$37.5 million, underscores the company’s strategic shift away from an agricultural business that has faced profitability challenges since its establishment in 2008, according to businesstimes on February 05, 2024.

One of the subsidiaries, focused on investment and property holdings, holds dormant land spanning 509.54 hectares in the countryside and is set to be sold for US$1.5 million. Hong Lai Huat clarified that it currently has no immediate development plans for this land, emphasizing its preference for more strategically located landbanks in urban areas for potential development under its property division.

The second subsidiary, with a proposed sale value of US$36 million, holds rights to 12 parcels of agricultural land covering 8,999.95 hectares. This land is primarily dedicated to cultivating fresh cassava and includes essential infrastructure such as offices, warehouses, workstations, and a cassava starch production factory.

Hong Lai Huat plans to seek shareholder approval for the subsidiary’s sale through an extraordinary general meeting to be convened shortly. The move aligns with the company’s broader realignment strategy, focusing on more lucrative ventures in the ever-evolving real estate landscape.

Previously, Hong Lai Huat (HLH) Group officially launched Cambodia’s largest Agricultural Hub (Agri-Hub) and signed an MOU with the Singapore Manufacturing Federation (SMF) to attract more Singaporean investors into Cambodia. (Read more)

• Business and Market
• Economy and Finance