Latest news with #AdrianCheng
Business Times
6 days ago
- Business
- Business Times
New World in talks with Blackstone, CapitaLand: sources
[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 sources familiar with the matter. Blackstone has been in discussions with New World to buy some of its assets, said the sources, asking not to be identified talking about a private matter. 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 sources said. Singapore property firm CapitaLand also engaged with New World for exploratory discussions in recent weeks, according to the sources. New World is still facing challenges even after it pulled off one of the city's biggest refinancing deals worth US$11 billion earlier this year. It has also been trying to secure a loan of as much as HK$15.6 billion (S$2.6 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 sources 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 mainland China. Its net debt reached 95.5 per cent of shareholders' equity as at December, according to Bloomberg Intelligence. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 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 firm reported its first annual loss in 20 years for the 12 months ended June 2024. New World said on Thursday (Aug 7) that no share offers were given to the company by any person, 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. Adrian Cheng, the eldest son of the family patriarch, stepped down as chief executive officer in September 2024, and he left the board recently. The Cheng family also owns a stake in Chow Tai Fook Jewellery Group, led by Adrian's sister Sonia Cheng. New World Development might need to focus on selling some of its investment properties to raise liquidity, Bloomberg Intelligence analysts Patrick Wong and John Wong said in a note on Thursday. The company has been seeking to sell its 11 Skies mall at a loss, sources familiar have said. Its China assets are also up for grabs, and the firm is trying to recuperate cash faster, sources familiar have said. BLOOMBERG
Business Times
6 days ago
- Business
- Business Times
New World in talks with Blackstone, CapitaLand for asset sales
[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 sources familiar with the matter. Blackstone has been in discussions with New World to buy some of its assets, said the sources, asking not to be identified talking about a private matter. 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 sources said. Singapore property firm CapitaLand also engaged with New World for exploratory discussions in recent weeks, according to the sources. New World is still facing challenges even after it pulled off one of the city's biggest refinancing deals worth US$11 billion earlier this year. It has also been trying to secure a loan of as much as HK$15.6 billion (S$2.6 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 sources 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 mainland China. Its net debt reached 95.5 per cent of shareholders' equity as at December, according to Bloomberg Intelligence. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 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 firm reported its first annual loss in 20 years for the 12 months ended June 2024. New World said on Thursday (Aug 7) that no share offers were given to the company by any person, 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. Adrian Cheng, the eldest son of the family patriarch, stepped down as chief executive officer in September 2024, and he left the board recently. The Cheng family also owns a stake in Chow Tai Fook Jewellery Group, led by Adrian's sister Sonia Cheng. New World Development might need to focus on selling some of its investment properties to raise liquidity, Bloomberg Intelligence analysts Patrick Wong and John Wong said in a note on Thursday. The company has been seeking to sell its 11 Skies mall at a loss, sources familiar have said. Its China assets are also up for grabs, and the firm is trying to recuperate cash faster, sources familiar have said. BLOOMBERG
Yahoo
25-07-2025
- 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. 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
09-07-2025
- Business
- Yahoo
Billionaire Cheng Empire on the Brink? New World Rushes to Sell China Icons, Eyes $2B Lifeline
After locking in an $11 billion refinancing deal in June, New World Development (NDVLY) isn't slowing down. The Hong Kong developer is now pushing to offload major real estate assets across mainland Chinapiece by piece. On the block: its marquee K11 properties in Hangzhou, Shenzhen, and Shanghai. According to people familiar with the matter, these sales are tied to loan terms agreed with banks, which want faster recovery and quicker deals. The firm is prioritizing buyers like private equity funds that can move fast and pay cash. But this isn't a fire saleyet. The company's sights are set on raising capital efficiently, while navigating a fragile operating environment. Warning! GuruFocus has detected 8 Warning Signs with NDVLY. The bigger play could be unfolding back home. New World is now seeking up to $2 billion through a new loan backed by its most valuable assetVictoria Dockside, a waterfront development in Hong Kong seen as the crown jewel of the portfolio. The deadline for bank commitments is July 11, though that could shift, as is common in the syndicated loan market. Still, analysts warn: while the last refinancing bought time, it didn't shrink the debt. New World's net debt stood at 95.5% of equity as of December. Its full-year loss in 2024the first in two decadesonly adds pressure, especially with no clear succession plan in place after Adrian Cheng exited the board earlier this month. The outlook? Cloudy at best. China's property market remains in a slump, and valuations are under pressure. New World reportedly wants 2.85 billion yuan (about $397 million) for its Shanghai K11 tower, but in today's environment, price is just one part of the challengefinding willing buyers is another. The firm still holds HK$50 billion ($6.4 billion) in completed investment properties in mainland China. But with Hong Kong real estate prices near nine-year lows and banks tightening lending terms, the Cheng family may need to act decisivelyor risk losing control of an empire under stress. 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
02-07-2025
- Business
- Yahoo
New World Development scion Adrian Cheng resigns from board
Cheng tendered his resignation as a non-executive director and non-executive vice-chairman of New World with effect from July 1. New World Development Co.'s third-generation heir Adrian Cheng has completely quit the beleaguered Hong Kong property developer less than a year after stepping down as chief executive officer. Cheng tendered his resignation as a non-executive director and non-executive vice-chairman of New World with effect from July 1 'to devote more time on public services and other personal commitments' and he has no disagreement with the board relating to his resignation, the company said in a stock exchange filing on Monday. Cheng's resignation as CEO in September was rare in Hong Kong's property industry, where the biggest players are all controlled by families that carefully plan their succession. Long assumed to be a favourite of the late patriarch Cheng Yu-Tung, the Harvard-educated Adrian had been seen as the heir apparent of the business group led by his billionaire dad. But New World has gotten into trouble since Adrian was elevated to CEO in 2020, four years after his grandfather died. During his tenure, New World has sunk deeper into debt than any other major Hong Kong developer and last year it posted its first annual loss in two decades. At the end of 2024, net debt reached 96% of shareholder equity, according to Bloomberg Intelligence, making it one of the most leveraged developers in Hong Kong. Cheng's resignation announcement came hours after the developer announced the closing of a record HK$88.2 billion (US$11.2 billion or $14.3 billion) loan refinancing deal, the largest-ever in the city. The company successfully refinanced certain of its existing offshore unsecured financial indebtedness, including bank loans, through a new refinancing term loan facility, it said in a separate filing to the Hong Kong stock exchange Monday. 2 bil loan refinancing deal New World gets 100% lender approval for HK$87.5 bil refinancing Morningstar data shows five Asian high-yield bonds with most exposure to New World Development group Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? Click hereError 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
