Hong Kong developer NWD meets 2025 sales target and wins commitment to refinancing
Hong Kong developer New World Development (NWD) secured some much-needed financial relief by hitting a 2025 property sales target of HK$26 billion (US$3.3 billion) and winning a commitment from creditors to refinance HK$87.5 billion of its debt, people familiar with the matter said on Friday.
With a strong sales response for its jointly owned Deep Water Pavilia project in Wong Chuk Hang on the south side of Hong Kong Island, NWD was expected to hit the contracted sales target for the financial year that ends on Monday, according to a source familiar with the matter.
Deep Water Pavilia has 447 units in total, with sizes ranging from 408 to 3,120 sq ft. It was jointly developed by five developers, including NWD, which owns 50 per cent of the property. The other partners are Empire Group, CSI Properties, Lai Sun Development and MTR Corp. As of June 26, the group had sold 341 units with total sales of HK$6.3 billion, the company said.
'The property sales and creditors' commitments to refinance the US$87.5 billion are positive news for NWD,' said Tom Chan, permanent honourable president and director of the Institute of Securities Dealers.
The developer received backing from banks for its HK$87.5 billion loan refinancing before its Monday deadline, according to another source.
The refinancing deal was reportedly backed by some 40 assets, including the company's New World Tower headquarters and its Victoria Dockside complex in Tsim Sha Tsui. Bloomberg earlier reported that New World was in the market for a separate HK$15.6 billion loan secured against Victoria Dockside to support the broader refinancing exercise.
The development marked the end of a months-long negotiations for a debt package that sought to pull NWD back from the brink of default.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
2 hours ago
- South China Morning Post
Hong Kong's MTR Corp to carry out one-off inspection of critical rail assets
Hong Kong's rail operator will carry out a one-off inspection of all its overhead lines and signalling points, and is considering offering a free cross-harbour shuttle bus in the event of service suspensions as part of efforts to follow up on a series of recent blunders. The MTR Corporation on Friday rolled out an eight-point plan that falls under an existing HK$65 billion (US$8.3 million) five-year asset and maintenance upgrade announced in 2023. The move follows calls from Chief Executive John Lee Ka-chiu last month for the transport provider to improve on its 'inadequacies' in emergency response and contingency planning after three service disruptions occurred within a four-month period. In two incidents, engineering trains were stranded on a section of the East Rail line, while in another, services along the Tseung Kwan O line were suspended for five-hours last month. Transport minister Mable Chan said the government would continue to supervise and guide the MTR Corp in learning from its past failures and strengthening its risk prediction and mitigation capabilities. 'The MTR Corp must proactively address potential issues before they arise, enhance the safety of its railway systems and accelerate the application of innovative technologies to realise predictive maintenance for fortifying the overall resilience of the railway system,' she said. 'Its management should also leverage the wisdom of frontline staff and strengthen the sense of accountability among staff from different ranks.'
South China Morning Post
4 hours ago
- South China Morning Post
China and US finalise trade deal; global conflict risk warning: SCMP daily highlights
Catch up on some of SCMP's biggest China stories of the day. If you would like to see more of our reporting, please consider subscribing China said on Friday that it would review and approve export applications for controlled items while the US would also remove some limits – confirming a breakthrough in trade talks centred on export controls. There is more risk of a global military conflict breaking out under Donald Trump's leadership, with the US more likely to be drawn into wars involving smaller nations or allies, according to Chinese analysts. Linda Sun, a former aide to New York state governors Kathy Hochul and Andrew Cuomo, has been charged with acting as an unregistered agent of China's government. Photo: Reuters A former top New York official earlier charged with acting as a Chinese agent was handed a second federal indictment alleging she received kickbacks for steering some US$35 million worth of healthcare contracts to favoured suppliers during the coronavirus pandemic, a federal court said on Thursday.
South China Morning Post
4 hours ago
- South China Morning Post
Hong Kong leader taps 2 tech heads from Hangzhou's ‘Little Dragons' as advisers
The Hong Kong chief executive's Council of Advisers has welcomed three new members, including two tech bosses from Hangzhou's 'Six Little Dragons' and a mainland Chinese economist who was a senior official with the International Monetary Fund (IMF). The government on Friday announced the appointment of 34 members to the second term of Chief Executive John Lee Ka-chiu's Council of Advisers, with the two-year appointment to start on Tuesday. Victor Li Tzar-kuoi, chairman of CK Hutchison Holdings, will not remain in the group after his current appointment ends on June 30. Li's firm has been embroiled in the controversial sale of its overseas ports, including two Panama facilities. The two tech bosses from Hangzhou appointed to the council are Han Bicheng, CEO of BrainCo, which specialises in brain-machine interfaces, and Wang Xingxing, founder and CEO of humanoid robot maker Unitree Robotics. They are placed under the category of 'innovation and entrepreneurship' in the council. Zhu Min, who was the deputy managing director of the IMF from 2011 to 2016, is another newly appointed member of the council under the category of 'economic advancement and sustainability'. Zhu is currently a member of the senior expert advisory committee of the China Centre for International Economic Exchanges and part of the Board of Trustees of the World Economic Forum. During his trip to Hangzhou in April, Hong Kong's leader met representatives of the 'Six Little Dragons', all technology start-ups, including Han and Wang, and visited BrainCo and Unitree.
