Latest news with #VictoriaDockside
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.
South China Morning Post
09-07-2025
- Business
- South China Morning Post
Hong Kong developer New World eyes sale of China assets after refinancing deal
New World Development is seeking to divest real estate projects in mainland China after pulling off an US$11 billion refinancing deal in June, according to people familiar with the matter. The Hong Kong developer was planning to sell property assets in China piecemeal, including landmarks like its K11 buildings in Hangzhou, Shenzhen and Shanghai, the people said, asking not to be named because the matter is private. New World was expediting asset sales as part of its agreement to secure its June loan refinancing agreement with banks, the people added. The company favours buyers such as investment funds or private firms that could make swift decisions and offer faster cash recovery, one of them said. The developer remains in the spotlight as it continues to face liquidity stress and is seeking to raise as much as US$2 billion through a new loan that would be backed by its crown jewel asset, Victoria Dockside in Hong Kong. The Victoria Dockside in Hong Kong is New World's crown jewel asset. Photo: Handout The firm set a commitment deadline for July 11, Bloomberg previously reported. It is common for borrowers to extend such deadlines for various reasons in the syndicated loan market.
Bloomberg
03-07-2025
- Business
- Bloomberg
New World's Financing Back in Spotlight as Loan Deadline Nears
Hong Kong developer New World Development Co. is returning to the spotlight this month as investors' focus turns to its plan to raise as much as $2 billion through a new loan, just days after closing a record refinancing deal. The distressed builder in late May invited more banks to join the three-year facility backed by its crown jewel asset, Victoria Dockside, with a commitment deadline set for July 11, Bloomberg News reported.
Yahoo
19-06-2025
- Business
- Yahoo
New World's $11B Lifeline: Will Hong Kong's Most Indebted Developer Survive the Countdown?
New World Development (NDVLY) is inching closer to sealing a massive HK$87.5 billion ($11.1 billion) loan refinancing, potentially giving the debt-laden Hong Kong builder some much-needed breathing room. After months of tense negotiations with over 50 lenders, people familiar with the talks say the company has now secured preliminary consent from all partiesincluding banks that had initially pushed back. But there's still a clock ticking: written approvals must land by June 30, or the deal could unravel entirely. Warning! GuruFocus has detected 8 Warning Signs with NDVLY. If finalized, the agreement would extend HK$63.4 billion ($8.1 billion) in near-term maturities to 2028, easing immediate pressure on New World's balance sheet. Roughly 40 assetsincluding New World Tower and the prized Victoria Docksidehave been pledged as collateral to secure the deal. Another HK$24.1 billion in longer-dated loans will remain on their original timelines, though with added credit enhancements and stricter collateral terms. The refinancing comes as part of a broader fight for survival, with investors increasingly concerned about the company's ability to navigate Hong Kong's prolonged property downturn and rising debt costs. The company isn't stopping there. New World is also seeking a separate HK$15.6 billion loan backed by Victoria Dockside, testing whether it can still tap fresh capital markets amid growing skepticism. Earlier this year, the developer delayed interest payments on four perpetual notes, triggering a sharp selloff in its dollar bonds. While this refinancing could help buy time, the path forward may still be rockyand investors are watching closely to see whether the firm can stabilize, or if this lifeline is just a pause before the next storm. This article first appeared on GuruFocus.
Bloomberg
30-05-2025
- Business
- Bloomberg
New World Seeks More Banks to Join Up to $2 Billion Loan
New World Development Co. is looking for more banks to join an up to HK$15.6 billion ($2 billion) loan backed by its key asset, Victoria Dockside, according to people familiar with the matter, as the cash-strapped company tries to shore up its finances. Deustche Bank AG, which is arranging the deal, sent invitations this week to some banks that aren't already lenders to the developer, the people said, asking not to be identified discussing private matters. The base size of the three-year facility is HK$4 billion, they added. Proposed terms that the company sent to other banks in March didn't specify a base loan size.
