Hongkong Land Case Study

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K. JOINT VENTURE
Rationale for Joint Venture

Hongkong Land has involved in several joint venture developments and this gives them to have an extensive experience for a joint venture. One of the reasons why Hongkong land prefers to engage in a joint venture especially in foreign countries like Singapore and Malaysia is due to the benefits of having local expertise in the respective countries. Although Hongkong Land has quite a number of properties in Singapore, it is still a company originated from Hong Kong. Thus, we perceive that through a joint venture, Hongkong Land may gain extensive knowledge from a reputable local developer to further enhance the standard and reputation of its development projects.

Other than the benefits from local
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It is pertinent to engage them for a joint venture as it adheres to the standards and business conduct behaviour of Hongkong Land. Other than the company’s respectable disciplines, the professional and knowledgeable experience from Keppel Land in Singapore’s residential and commercial market will be another benefit.

Being a leading prime office developer in Singapore, Keppel Land will bring in high quality tenants from its high reputation and standards, especially those tenants who previously engaged with Keppel Land. Its brand name will simultaneously aid in marketing of the project as a whole as well as building up network for Hongkong Land. Besides, Hongkong Land had previously worked with Keppel Land before in the successful development of the Marina Bay Financial
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Since this is the last land parcel around Shenton Way, by taking up the opportunity will further strengthen the profile of HL in central area of Singapore. A 0.50 debt-to-equity ratio is chosen based on the company financial capability and a joint venture development is proposed for the optimization of benefits for HL. The joint venture partner proposed would be Keppel Land. A continuous follow up on the detailed planning strategies will be investigated over time to make the project flexible and well prepared to accommodate any amendments should issue arises in the future. In a nutshell, our team would recommends to participate in the tender with a bidding price at approximately $1.85 billion and retaining the property for 6 more years after construction period for investment

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