The Jardine Matheson-backed firm, which owns 100% of MCL Land, is seeking to divest the Singapore-based company at a premium to its book value of S$1.1 billion (US$820 million), said the people, asking not to be identified as the process is private.

Hongkong Land is speaking with prospective financial advisers to help prepare for a transaction, the people said.

Deliberations are ongoing and Hongkong Land could still opt to keep the assets, the people said.

A representative for Hongkong Land declined to comment, while MCL Land didn’t immediately respond to requests seeking comment.

Hongkong Land said in late October it plans to forgo residential development in a move that will eventually see it set up real estate investment trusts.

It aims to expand its assets under management from US$40 billion to US$100 billion by 2035, much of which will be owned by third-party capital.

It estimates that the new model will double profits and dividends.

Hongkong Land’s Singapore-listed stock has climbed 29% this year, giving the company a market value of roughly US$10 billion.

Founded in 1889, Hongkong Land has a primary listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore, according to its website.

The group develops, owns and manages ultra-premium mixed-use real estate in Asian gateway cities, spanning more than 850,000 square metres.

It counts flagship projects in Hong Kong, Singapore and Shanghai. Closely held residential developer MCL Land counts properties in Singapore and Malaysia.