Hong Kong Property Giant Wobbles: New World Delays Bond Payments, Triggers Market Shock
New World Development (NDVLY) just delivered another shock to already-nervous investors. On Friday, the Hong Kong property giant announced it will defer coupon payments on four perpetual bondspushing back roughly $77.2 million in payments originally due next month. The decision sent its 6.15% perpetual bondscheduled for a June 16 coupontumbling over 12 cents to just 49.9 cents on the dollar. While this kind of deferral doesn't trigger a technical default, it's a flashing signal: the firm is feeling the squeeze.
Warning! GuruFocus has detected 8 Warning Signs with NDVLY.
In a brief statement, the company said it's managing debt while navigating a volatile market. But the backdrop tells a more pressing story. Home prices in Hong Kong have dropped 28% from their 2021 peak and remain stuck at 2016 levels. Residential property makes up half of New World's revenue. After reporting its first annual loss in 20 years, the company now faces one of the heaviest debt loads among Hong Kong developersHK$210.9 billion, to be exact. And with another perpetual bond due for a steep interest rate reset next month, the pressure could intensify.
New World is scrambling to secure a HK$87.5 billion refinancing package before the end of June but has only locked in about 40% of that so far. It's also pitching a new HK$15.6 billion loan backed by its crown jewel, Victoria Dockside. If those deals fall through, the fallout could ripple far beyond the companyespecially for lenders already weighed down by rising defaults in commercial real estate. Investors are watching closely. What happens next could reshape Hong Kong's real estate risk landscape.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Trump's $14B Power Play: Japan Buys US Steel--But America Keeps the Keys
The $14.1 billion takeover of United States Steel (NYSE:X) by Japan's Nippon Steel is alive, kickingand reportedly on track to close before a key June 18 deadline. Sources close to the matter say talks with the U.S. government are moving toward the finish line, with negotiations centering around national security, governance, andof coursepolitics. The Committee on Foreign Investment in the United States (CFIUS) hasn't wrapped up its investigation just yet, but insiders say it's likely to greenlight the deal before time runs out. Markets are pricing in success: US Steel shares have hovered above $53 since late May, brushing right up against Nippon's $55-a-share offer. Warning! GuruFocus has detected 8 Warning Sign with X. But this isn't your typical cross-border M&A deal. Under the current framework being discussed, US Steel will stay headquartered in Pittsburgh, retain an American CEO, and operate under a U.S.-majority boardwith some positions needing government signoff. Trump, who's taken a victory lap on the campaign trail, says his push added a $5,000 worker bonus and locked in $9.2 billion in future steel investments. He's also promised no layoffs, no outsourcing, and full blast furnace capacity for a decade. Whether all of that makes it into the final signed documents remains to be seenbut the direction is clear: Japanese capital, American command. There's still a court case technically underway, stemming from the Biden administration's earlier attempt to block the deal. The Justice Department just asked for an eight-day extension to keep negotiatinganother signal that both sides are close. And if this closes? Nippon Steel won't just own a symbol of American industry. It'll own a politically engineered hybridwith a Japanese parent and a very American playbook. This article first appeared on GuruFocus.
Yahoo
an hour ago
- Yahoo
Omada Health Soars 42% in Nasdaq Debut After $150 Million IPO
Omada Health (OMDA, Financials) surged 42% in its Nasdaq debut Friday after the virtual chronic care company priced its initial public offering at $19 per share, raising $150 million and securing a valuation just above $1 billion. The stock opened at $23 and climbed quickly past $27. Warning! GuruFocus has detected 8 Warning Sign with X. Founded in 2012, Omada offers virtual programs for chronic conditions including prediabetes, diabetes, and hypertension. The IPO, which sold 7.9 million shares, is part of a recent resurgence in health and tech listings, following last month's debut of Hinge Health and Thursday's surge in Circle Internet shares. In its prospectus, Omada reported Q1 revenue jumped 57% year over year to $55 million, while full-year 2024 revenue rose 38% to $169.8 million. The company narrowed its net loss in the most recent quarter to $9.4 million from $19 million a year earlier. Major outside shareholders include U.S. Venture Partners, Andreessen Horowitz, and Fidelity's FMR LLC, each holding a 9% to 10% stake. 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
Yahoo
an hour ago
- Yahoo
Grab's $7B Mega Move Could Flip Southeast Asia's Tech Empire--But Indonesia Might Block It
Grab (NASDAQ:GRAB) is quietly pushing forward on what could be one of Southeast Asia's biggest tech shakeupsa $7 billion move to acquire rival GoTo. After years of circling each other, the two ride-hailing and food delivery giants are now refining a two-step deal: GoTo could first absorb Grab's Indonesia unit, then Grab would swoop in for control of the merged business. But it's not just about market strategy. The deal faces serious political and regulatory headwinds, especially in Indonesia, where a merger would concentrate 6070% of the on-demand market in one player's hands. Warning! GuruFocus has detected 5 Warning Sign with GRAB. Enter DanantaraIndonesia's sovereign wealth fundwhich has kicked off early-stage talks to buy a minority stake in the new entity. That move could help ease nationalist fears over foreign dominance, job losses, and rising consumer costs. For President Prabowo's government, which has been flexing its populist muscles with wage hikes, subsidy boosts, and demands for driver bonuses, having a local backer in the mix might be a political win. For Grab, it's a potential green light. But the clock is ticking. Any deal still hinges on clearance from Indonesia's antitrust watchdog, and regulatory nerves remain high. Meanwhile, the market dynamics are shifting fast. Grab's revenue in Indonesia rose just 6.3% in 2024its slowest in Southeast Asiawhile GoTo has already exited Vietnam and Thailand. A tie-up would give Grab more firepower in Indonesia's 275-million-strong market, just as newer players like InDrive and Maxim try to muscle in. The stakes? If Danantara comes onboard, the merger could reshape Southeast Asia's tech landscape. If not, Grab might have to find another way into the driver's seat. 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
