Hong Kong-based developer NWD surpasses 2025 sales objective, securing refinancing agreement commitment.
A Fresh Take
"Hong Kong's real estate giant, New World Development (NWD), scored a vital financial victory with a sweet deal worth HK$26 billion (roughly US$3.3 billion) in property sales and a bank-backed HK$87.5 billion loan refinancing commitment, sources divulged on Friday.
Driving this success was the impressive sales response for the Deep Water Pavilia project, a joint venture in Wong Chuk Hang, Hong Kong Island's south side. With 447 units ranging from 408 to 3,120 sq ft, NWD, as a 50% owner along with partners like Empire Group, CSI Properties, Lai Sun Development, and MTR Corp, looked set to smash the sales target by the year-end date approaching on Monday.
As of June 26, the group reported sales of 341 units and HK$6.3 billion taken. This robust response from buyers is a much-needed boost for NWD.
Tom Chan, the permanent honorary president, and director of the Institute of Securities Dealers, summed it up: “New World Development's property sales and creditors' commitments to refinance the staggering HK$87.5 billion are a positive sign for the company.”
Indeed, the refinancing deal, wrapping up lengthy negotiations aimed at rescuing NWD from potential default, is a major relief for investors wary about the company's manageable debt in the face of the current Hong Kong and mainland China real estate slump. NWD successfully procured bank support for the HK$87.5 billion loan refinancing before its looming Monday deadline.
Whether it's the iconic New World Tower headquarters, the trendy Victoria Dockside complex in Tsim Sha Tsui, or other assets in the company's extensive portfolio –– including the 11 Skies mall near Hong Kong's airport –– remains unknown which assets played a role in this refinancing deal. What's clear, however, is that valuable assets were leveraged to secure the loan."
The financial success of New World Development (NWD) was achieved through a HK$26 billion property sales deal and a HK$87.5 billion loan refinancing commitment, as revealed on Friday. This substantial refinancing deal, a result of lengthy negotiations, will support NWD's manageable debt amidst the Hong Kong and mainland China real estate slump, with valuable assets undisclosed serving as collateral.
