Latest news with #K11
Yahoo
5 days ago
- Business
- Yahoo
Billionaire Cheng Family Faces Fire Sale: New World's $1.9B Mall on the Block Amid Debt Crunch
New World Development (NDVLY) is exploring a potential sale of its flagship 11 Skies retail complex near Hong Kong International Airport as it faces mounting liquidity pressure, according to people familiar with the matter. The project once pitched as Hong Kong's largest shopping destination could now be sold for as little as HK$15 billion to HK$17 billion, significantly below the HK$20 billion the company originally invested. While discussions with the airport authority are still preliminary, the move suggests the company is accelerating capital-raising efforts as leasing momentum at 11 Skies falls short and uncertainty lingers over traffic flow to the adjacent terminal. Warning! GuruFocus has detected 8 Warning Signs with NDVLY. The real estate developer is also seeking to raise up to $2 billion through a new loan facility backed by Victoria Dockside, a prized waterfront asset in Tsim Sha Tsui. But that process has already missed internal timelines, adding to investor concerns. New World had roughly HK$50 billion worth of completed properties in mainland China at the end of 2023, though offloading these assets may prove difficult given the ongoing property downturn and macro slowdown. In Shanghai, it's quietly marketing its K11 tower for 2.85 billion yuan ($397 million), according to a broker listing. Behind all this is a larger story of a Hong Kong property empire under strain. The Cheng family, which controls New World and was worth an estimated $21 billion as of March, has already attempted a semi-bailout and reshuffled leadership, with Adrian Cheng stepping down from the board after vacating the CEO role. Still, the company posted its first annual loss in two decades for the year ending June 2024. With property prices near a 9-year low and banks tightening the screws on refinancing, the market is watching closely to see whether this next round of asset sales can stabilize one of Hong Kong's most storied developers. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
17-07-2025
- Business
- Fashion Network
New World seeks to sell 11 Skies airport mall to boost liquidity
The company and the airport authority didn't immediately respond to requests for comment. The development of the 11 Skies mall has become a drag on New World, hampered by sluggish tenant sign-ups and concerns over weak foot traffic — fueled in part by uncertainty around airlines' willingness to shift flights to Hong Kong's second airport terminal next to the complex. Facing liquidity pressure, New World Development is accelerating asset sales — including in mainland China — as it rushes to shore up its balance sheet. The company is also seeking to raise as much as $2 billion through a new loan facility, backed by its crown jewel, the Victoria Dockside complex in Hong Kong, underscoring the urgency of its capital-raising efforts. New World missed its self-imposed target to complete the $2 billion loan deal, people familiar said earlier this week. The company had HK$50 billion in completed investment properties in mainland China as of Dec. 31, according to Bloomberg Intelligence. Its prospects for selling the assets are clouded by the country's ongoing real estate downturn and slowing economy. In Shanghai, the company is seeking 2.85 billion yuan ($397 million) for its K11 tower, according to a property agent brochure. Controlled by the family empire of Hong Kong tycoon Henry Cheng, New World has one of the highest debt burdens of any big developer in the city. Its net debt reached 95.5% of shareholders' equity as of December, according to Bloomberg Intelligence. The funding environment for troubled and small Hong Kong developers has become increasingly challenging given that property prices in the city are now around a nine-year low. Banks are demanding stricter refinancing terms and asking for more credit enhancements. The Cheng clan, worth an estimated $21 billion as of March, proposed a semi-bailout to New World about two years ago, when it offered to take a subsidiary private and give the developer about HK$21.7 billion. The firm reported its first annual loss in 20 years for the 12 months ended June 2024. Adrian Cheng, the eldest son of the family's patriarch Henry Cheng, stepped down as chief executive officer soon after that, and he left the board recently. The Cheng family also owns a stake in Chow Tai Fook Jewellery Group Ltd. Adrian Cheng's siblings include Sonia Cheng, who looks after the Rosewood Hotel and co-leads the jewelry business.
Fashion Network
17-07-2025
- Business
- Fashion Network
New World seeks to sell 11 Skies airport mall to boost liquidity
New World Development Co. is seeking to sell its flagship 11 Skies mall to address liquidity constraints, according to people familiar with the matter. The company has held early-stage discussions with the Hong Kong airport authority on its plans, the people said, requesting not to be named because the matter is private. The talks are preliminary and subject to change, the people said. The mall has been evaluated at a price range of HK$15 billion ($1.9 billion) to HK$17 billion, one of the people said. That means selling at a loss considering the company invested HK$20 billion for the project. The company and the airport authority didn't immediately respond to requests for comment. The development of the 11 Skies mall has become a drag on New World, hampered by sluggish tenant sign-ups and concerns over weak foot traffic — fueled in part by uncertainty around airlines' willingness to shift flights to Hong Kong's second airport terminal next to the complex. Facing liquidity pressure, New World Development is accelerating asset sales — including in mainland China — as it rushes to shore up its balance sheet. The company is also seeking to raise as much as $2 billion through a new loan facility, backed by its crown jewel, the Victoria Dockside complex in Hong Kong, underscoring the urgency of its capital-raising efforts. New World missed its self-imposed target to complete the $2 billion loan deal, people familiar said earlier this week. The company had HK$50 billion in completed investment properties in mainland China as of Dec. 31, according to Bloomberg Intelligence. Its prospects for selling the assets are clouded by the country's ongoing real estate downturn and slowing economy. In Shanghai, the company is seeking 2.85 billion yuan ($397 million) for its K11 tower, according to a property agent brochure. Controlled by the family empire of Hong Kong tycoon Henry Cheng, New World has one of the highest debt burdens of any big developer in the city. Its net debt reached 95.5% of shareholders' equity as of December, according to Bloomberg Intelligence. The funding environment for troubled and small Hong Kong developers has become increasingly challenging given that property prices in the city are now around a nine-year low. Banks are demanding stricter refinancing terms and asking for more credit enhancements. The Cheng clan, worth an estimated $21 billion as of March, proposed a semi-bailout to New World about two years ago, when it offered to take a subsidiary private and give the developer about HK$21.7 billion. The firm reported its first annual loss in 20 years for the 12 months ended June 2024. Adrian Cheng, the eldest son of the family's patriarch Henry Cheng, stepped down as chief executive officer soon after that, and he left the board recently. The Cheng family also owns a stake in Chow Tai Fook Jewellery Group Ltd. Adrian Cheng's siblings include Sonia Cheng, who looks after the Rosewood Hotel and co-leads the jewelry business.
Fashion Network
16-07-2025
- Business
- Fashion Network
New World seeks to sell 11 Skies airport mall to boost liquidity
New World Development Co. is seeking to sell its flagship 11 Skies mall to address liquidity constraints, according to people familiar with the matter. The company has held early-stage discussions with the Hong Kong airport authority on its plans, the people said, requesting not to be named because the matter is private. The talks are preliminary and subject to change, the people said. The mall has been evaluated at a price range of HK$15 billion ($1.9 billion) to HK$17 billion, one of the people said. That means selling at a loss considering the company invested HK$20 billion for the project. The company and the airport authority didn't immediately respond to requests for comment. The development of the 11 Skies mall has become a drag on New World, hampered by sluggish tenant sign-ups and concerns over weak foot traffic — fueled in part by uncertainty around airlines' willingness to shift flights to Hong Kong's second airport terminal next to the complex. Facing liquidity pressure, New World Development is accelerating asset sales — including in mainland China — as it rushes to shore up its balance sheet. The company is also seeking to raise as much as $2 billion through a new loan facility, backed by its crown jewel, the Victoria Dockside complex in Hong Kong, underscoring the urgency of its capital-raising efforts. New World missed its self-imposed target to complete the $2 billion loan deal, people familiar said earlier this week. The company had HK$50 billion in completed investment properties in mainland China as of Dec. 31, according to Bloomberg Intelligence. Its prospects for selling the assets are clouded by the country's ongoing real estate downturn and slowing economy. In Shanghai, the company is seeking 2.85 billion yuan ($397 million) for its K11 tower, according to a property agent brochure. Controlled by the family empire of Hong Kong tycoon Henry Cheng, New World has one of the highest debt burdens of any big developer in the city. Its net debt reached 95.5% of shareholders' equity as of December, according to Bloomberg Intelligence. The funding environment for troubled and small Hong Kong developers has become increasingly challenging given that property prices in the city are now around a nine-year low. Banks are demanding stricter refinancing terms and asking for more credit enhancements. The Cheng clan, worth an estimated $21 billion as of March, proposed a semi-bailout to New World about two years ago, when it offered to take a subsidiary private and give the developer about HK$21.7 billion. The firm reported its first annual loss in 20 years for the 12 months ended June 2024. Adrian Cheng, the eldest son of the family's patriarch Henry Cheng, stepped down as chief executive officer soon after that, and he left the board recently. The Cheng family also owns a stake in Chow Tai Fook Jewellery Group Ltd. Adrian Cheng's siblings include Sonia Cheng, who looks after the Rosewood Hotel and co-leads the jewelry business.
Fashion Network
16-07-2025
- Business
- Fashion Network
New World seeks to sell 11 Skies airport mall to boost liquidity
New World Development Co. is seeking to sell its flagship 11 Skies mall to address liquidity constraints, according to people familiar with the matter. The company has held early-stage discussions with the Hong Kong airport authority on its plans, the people said, requesting not to be named because the matter is private. The talks are preliminary and subject to change, the people said. The mall has been evaluated at a price range of HK$15 billion ($1.9 billion) to HK$17 billion, one of the people said. That means selling at a loss considering the company invested HK$20 billion for the project. The company and the airport authority didn't immediately respond to requests for comment. The development of the 11 Skies mall has become a drag on New World, hampered by sluggish tenant sign-ups and concerns over weak foot traffic — fueled in part by uncertainty around airlines' willingness to shift flights to Hong Kong's second airport terminal next to the complex. Facing liquidity pressure, New World Development is accelerating asset sales — including in mainland China — as it rushes to shore up its balance sheet. The company is also seeking to raise as much as $2 billion through a new loan facility, backed by its crown jewel, the Victoria Dockside complex in Hong Kong, underscoring the urgency of its capital-raising efforts. New World missed its self-imposed target to complete the $2 billion loan deal, people familiar said earlier this week. The company had HK$50 billion in completed investment properties in mainland China as of Dec. 31, according to Bloomberg Intelligence. Its prospects for selling the assets are clouded by the country's ongoing real estate downturn and slowing economy. In Shanghai, the company is seeking 2.85 billion yuan ($397 million) for its K11 tower, according to a property agent brochure. Controlled by the family empire of Hong Kong tycoon Henry Cheng, New World has one of the highest debt burdens of any big developer in the city. Its net debt reached 95.5% of shareholders' equity as of December, according to Bloomberg Intelligence. The funding environment for troubled and small Hong Kong developers has become increasingly challenging given that property prices in the city are now around a nine-year low. Banks are demanding stricter refinancing terms and asking for more credit enhancements. The Cheng clan, worth an estimated $21 billion as of March, proposed a semi-bailout to New World about two years ago, when it offered to take a subsidiary private and give the developer about HK$21.7 billion. The firm reported its first annual loss in 20 years for the 12 months ended June 2024. Adrian Cheng, the eldest son of the family's patriarch Henry Cheng, stepped down as chief executive officer soon after that, and he left the board recently. The Cheng family also owns a stake in Chow Tai Fook Jewellery Group Ltd. Adrian Cheng's siblings include Sonia Cheng, who looks after the Rosewood Hotel and co-leads the jewelry business.
