New World considers divestment of $2bn hotel portfolio in Hong Kong

New World Development is successful discussions to divest its 50% involvement successful a radical of 3 Hong Kong hotels with a combined worth of $2bn, reported Bloomberg, citing sources acquainted with the matter.

The talks impact Aravest, a Singapore-based existent property plus manager backed by Sumitomo Mitsui Finance & Leasing.

The Abu Dhabi Investment Authority owns the remaining 50% of the edifice portfolio, which consists of the Grand Hyatt, Renaissance Harbour View Hotel, and Hyatt Regency successful Kowloon.

If a woody is reached, New World Development is expected to person $300m successful currency aft settling indebtedness linked to the asset, according to 1 root with nonstop knowledge.

The sources besides noted that the negotiations stay ongoing and whitethorn not pb to a transaction.

The currency raised from the imaginable edifice merchantability would relationship for lone a tiny fraction of New World Development’s full nett debt, which was astir HK$122.7bn ($15.6bn) astatine the extremity of past year.

The institution has been seeking broader solutions for its debt.

Earlier negotiations with investors specified arsenic Blackstone connected selling a involvement successful the steadfast stalled implicit concerns related to nonaccomplishment of control. The deficiency of advancement successful talks was besides owed to contingent authorities liabilities tied to a buying centre adjacent Hong Kong International Airport.

Aravest was formed successful 2024 aft ESR Group sold the backstage funds concern of ARA Asset Management to a consortium led by Sumitomo Mitsui Finance & Leasing.

It antecedently managed the acquisition of the erstwhile Hotel Miramar successful Singapore done a money structure, and besides oversees properties successful the office, retail and edifice sectors.

"New World considers divestment of $2bn edifice portfolio successful Hong Kong" was primitively created and published by Hotel Management Network, a GlobalData owned brand.

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