Land Holdings Ltd. is in discussions with Ong Beng Seng’s Hotel Properties Ltd. to buy a majority stake in three buildings in Singapore’s Orchard Road shopping belt, according to people familiar with the matter.

A potential deal could involve the developer, controlled by Hong Kong’s Jardine Matheson Holdings Ltd., investing in the three adjacent properties earmarked for development, according to the people, who asked not to be identified discussing private matters. The assets comprise hotel voco Orchard, shopping mall Forum, and HPL House, which houses Hotel Properties’ headquarters and Hard Rock Cafe.

Discussions are still at an early stage and could conclude without a deal, the people said. A stake sale will likely value the assets at over S$2 billion ($1.6 billion), although that is subject to change, they said.

A Hongkong Land spokesperson declined to comment. Christopher Lim, Hotel Properties’ group executive director, declined to comment when contacted by phone.

A successful transaction will mark a respite for Hotel Properties, which has faced challenges after its co-founder Ong Beng Seng was convicted last year in a scandal that led to the imprisonment of a senior politician in Singapore. The Malaysian tycoon, who controls the firm with his wife Christina through a roughly 60% stake, relinquished his decades-long tenure as managing director of the company, citing medical conditions. He avoided a jail sentence and was fined.

Hotel Properties has been looking to reduce its stakes in the voco hotel and Forum mall, excluding HPL House, people familiar with the matter said last year. The firm is now including HPL House in the assets put up for sale after talks with other interested parties fell through, the people said.

Hotel Properties was given provisional government approval in 2023 to redevelop the three properties into a mixed project comprising a hotel, retail, office and residential components, as well as a rooftop garden and a performance theater.

As the sale of assets got underway, the redevelopment plans made some potential partners balk due to uncertainties, the people said. These include concerns over the theater’s profitability, and the lack of income for years arising from a big transformation, which is already likely to require significant capital outlay, they said.

Hotel Properties’ Lim said at a shareholders’ meeting in April that the company was evaluating the redevelopment carefully as it would involve giving up recurring income from the properties. It was “focused on optimizing development potential with the relevant authorities, including seeking revisions to certain approved parameters.”The company swung to a net loss of S$39.1 million in the first half of 2026, compared with a profit of S$11.4 million a year earlier. Its shares have fallen 6% over the past one year, compared with a 25% gain in the benchmark Straits Times Index.

For Hongkong Land, a purchase of the assets will expand its presence in Singapore’s retail strip. A new fund backed by the firm said in July it was buying Wheelock Place mall for S$1.1 billion from longtime owner Wharf Real Estate Investment Co. Wharf’s controlling shareholder Hong Kong billionaire Peter Woo also owns about a fifth of Hotel Properties’ shares.