Indebted HK developer New World in talks with CapitaLand, Blackstone for asset sales: Sources
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New World carries the heaviest debt burden among Hong Kong developers, amid a prolonged property market downturn.
PHOTO: AFP
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Hong Kong – New World Development is in talks with several potential investors, including Blackstone and CapitaLand Group, as the cash-strapped Hong Kong developer seeks to dispose of assets to improve liquidity, according to people familiar with the matter.
Blackstone has been in discussions with New World to buy some of its assets. The world’s largest alternative asset manager could be open to the option of taking the developer private, though there is no concrete proposal for this on the table, the people said.
Singapore property company CapitaLand also engaged with New World for exploratory discussions in recent weeks, the people added.
New World is still facing challenges even after it pulled off one of the city’s biggest refinancing deals worth US$11 billion (S$14.1 billion) earlier in 2025. It has also been trying to secure a loan of as much as HK$15.6 billion (S$2.55 billion) led by Deutsche Bank, though it recently missed a self-imposed target for that effort.
Other firms, including Ares Management, have also looked at the assets, though there is no indication of any recent concrete discussions, other people said.
Blackstone, CapitaLand and Ares declined to comment. New World did not respond to a query.
Controlled by Hong Kong’s Cheng family, New World carries the heaviest debt burden among major developers in the city, amid a prolonged real estate downturn in the financial hub and China.
Its net debt reached 95.5 per cent of shareholders’ equity as at December, according to Bloomberg Intelligence.
The Cheng family, worth an estimated US$21 billion as at March, proposed a semi-bailout to New World about two years ago, when it offered to take a subsidiary private and provide the developer with about HK$21.7 billion. The company reported its first annual loss in 20 years for the 12 months ended June 2024.
New World said on Aug 7 that no share offers were given to the company by anyone, including the controlling shareholder of New World and Blackstone.
The statement followed an Octus report that Blackstone and the Cheng family were considering co-investing about US$2.5 billion into New World, with options discussed for the investment in the form of preferred or ordinary equity.
Mr Adrian Cheng, the eldest son of the family patriarch, stepped down as chief executive in September 2024, and he left the board recently.
The Cheng family also owns a stake in Chow Tai Fook Jewellery Group, led by Mr Adrian Cheng’s sister Sonia.
New World has been seeking to sell its 11 Skies mall at a loss, people familiar with the matter have said. Its China assets are also up for grabs, and the company is trying to recuperate cash faster. BLOOMBERG
