Latest news with #NWD
South China Morning Post
4 days ago
- Business
- South China Morning Post
Hong Kong seeks new partner to get 11 Skies back on track amid New World's debt: sources
Airport Authority Hong Kong is in talks with New World Development (NWD) to get a massive commercial property project at the heart of Hong Kong's international airport back on track, according to several sources familiar with the matter. Advertisement The authority is considering the option of seeking a new partner to undertake and complete the work at 11 Skies shopping centre, which was awarded in 2018, the sources said. The financial terms of the move are still under negotiation, they said, declining to be identified for discussing a confidential matter. The move, viewed as a win-win solution for both parties, would offer relief to NWD, which is undergoing the biggest debt workout in three generations of ownership by the Cheng family. For the authority, it ensures that the city's status as an aviation and tourism hub is shielded from the developer's debt woes. The major sticking point in the talks is the potential compensation due to the authority for the 40-year contract, one of the sources said. NWD is under contract to pay the authority HK$1.8 billion (US$229.3 million) every year in guaranteed rent, the sources said. The authority's press office and spokespeople at NWD did not respond to requests for comment. The blueprint for Airport City – including 11 Skies – was first unveiled in 2019. Photo: Airport Authority of Hong Kong The project, with 3.8 million sq ft (353,000 square metres) of gross floor area, is part of the airport authority's SkyCity master plan , which combines shopping, entertainment, dining, commercial offices and several hotels in a 25 hectare (61.8 acre) area to undergird Hong Kong's status as Asia's aviation and international travel hub. The talks are focused on the retail, dining and entertainment space of 11 Skies, according to a source. The project also features three office towers that are not within the scope of discussion.
The Standard
6 days ago
- Business
- The Standard
Deep Water Pavilia II launches 80 flats with 4pc price hike
Cannas Ho, NWD director of sales and marketing for special projects, second from right. SING TAO
South China Morning Post
30-06-2025
- Business
- South China Morning Post
Hong Kong's New World secures US$11.3 billion refinancing deal just before deadline
Hong Kong developer New World Development (NWD) has successfully refinanced HK$88.2 billion (US$11.3 billion) of debt just before the deadline, concluding months of negotiations that pulled the company back from the brink of default. The refinancing package includes multiple tranches of bank loans with varying maturities, with June 30, 2028, being the earliest, the developer said in an exchange filing on Monday. The package would 'allow the group more flexibility to better manage its expected ongoing business and financial needs', the statement said. 'The new bank facility and the aligned bank facilities have terms, including financial covenants and security interests granted over certain of the group's assets.' CEO Echo Huang Shaomei said the successful refinancing 'is a testament to the confidence' placed in the company's operations, adding that the group's financial strategy prioritises reducing debt and improving cash flow. New World CEO Echo Huang Shaomei said the successful refinancing was a testament to the confidence placed in the company's operations. Photo: SOHU While local media reported that the refinancing deal was backed by some 40 of the company's assets, including the New World Tower headquarters and Victoria Dockside complex in Tsim Sha Tsui, the company did not give any details.
South China Morning Post
17-06-2025
- Business
- South China Morning Post
Hong Kong wealth legacy academy's new portal connects rich families with charitable work
The Hong Kong Academy for Wealth Legacy (HKAWL), chaired by Adrian Cheng Chi-kong, launched a web portal on Tuesday to connect wealthy families with philanthropic initiatives, giving them access to high-impact projects. The Impact Link Online Portal (iLink) will serve as a repository for philanthropic projects that wealthy families can participate in, as well as an online community where they can connect and learn from one another, said Cheng, a former CEO of Hong Kong property giant New World Development (NWD). 'From our engagements with family office principals, asset owners and inheritors, we've observed a strong demand for guidance on setting up family foundations, identifying impactful projects, scaling philanthropic efforts through collaboration and measuring philanthropic outcomes,' said Cheng. 'Families are also eager to learn from others' experiences about effective practices in philanthropy.' The portal was developed to meet these needs, offering a centralised platform for knowledge sharing, collaboration, as well as empowering families to reach informed and impactful philanthropic endeavours, he added. Adrian Cheng is the chairman of the Hong Kong Academy for Wealth Legacy. Photo: HKGTA Cheng, 45, a scion of one of Hong Kong's wealthiest families – which controls NWD and jewellery retailer Chow Tai Fook Jewellery Group – resigned as CEO of NWD in September. Long regarded as the family's heir apparent, Cheng joined NWD in 2007 at the age of 28 and led the company through an aggressive expansion in mainland China and Hong Kong, including the launch of his signature K11-branded shopping centres.
The Star
02-06-2025
- Business
- The Star
Hong Kong bankers on edge over US$11bil loan
The stakes are so high that in many cases, the banks' chief risk officers have stepped in. — Bloomberg HONG KONG: Hong Kong bankers have become fixated on an US$11bil loan deal with unusually high stakes for the financial hub. New World Development Co (NWD), an embattled property developer controlled by one of Hong Kong's richest families, is aiming to complete one of the city's largest-ever corporate refinancing deals with more than 50 banks by the end of June after pushing back an initial deadline for this month. So far, at least 12 banks have agreed to terms while the rest are still talking, according to sources. Failure to reach a deal could lead to demands for immediate repayment. The repercussions would threaten both NWD and many of the banks which are already suffering from a sharp rise in non-performing loans from commercial real estate. The stakes are so high that in many cases, the banks' chief risk officers have stepped in, sources said. Even chief executive officers of banks are closely monitoring the situation with frequent updates, the people added, asking not to be identified as the matter is private. 'A NWD failure wouldn't break the system, but that destabilisation could be contagious,' said Brock Silvers, managing director at private equity firm Kaiyuan Capital. 'A 'delay & pray' strategy would buy time while doing little to alleviate underlying risk to the company or Hong Kong's broader financial system.' NWD aims to secure HK$87.5bil in refinancing. It has commitments exceeding HK$20bil from Bank of China Ltd, HSBC Holdings Plc and Standard Chartered Plc, local lenders Bank of East Asia Ltd, Fubon Bank (Hong Kong) Ltd, Hang Seng Bank Ltd and French lender Credit Industriel et Commercial SA along with several other financial institutions. NWD did not respond to a request for comment. The other banks are in the process of securing internal credit approvals. A deal of this magnitude can take time as credit committees scrutinise every detail, raising numerous questions to evaluate the risks involved. Some banks are waiting for lenders with greater exposure to sign on before they can secure their own internal approvals, said the sources. A couple of other top Chinese, Japanese and Singaporean banks are in the final stages of approving the loan, according to sources. 'If one or two lenders in the syndicate are unwilling to commit, will the others in the syndicate be willing to take up the rest of the refinancing? 'If yes, the impact to the banking sector would be limited,' said Cusson Leung, chief investment officer for KGI Asia. — Bloomberg
