Cheng family’s NWD slumps after admitting 11 Skies, new investor plans stalled
The beleaguered developer is reportedly trying to offload the 11 Skies project and secure fresh investment to improve its balance sheet
Shares of New World Development (NWD) – the beleaguered property developer owned by one of Hong Kong’s richest families – fell on Thursday, after the firm acknowledged it had made no progress on plans to dispose of a mega shopping centre project and introduce new investors.
The stock tumbled by as much as 4.7 per cent in Hong Kong, before paring some of the losses to close 4.3 per cent lower at HK$8.95. The Hang Seng Index remained largely unchanged for the day.
NWD was still in talks with Hong Kong Airport Authority to seek contractual changes related to 11 Skies – a HK$20 billion (US$2.6 billion) shopping centre within Hong Kong International Airport – but the negotiations had yet to produce results, the developer said in an exchange statement on Thursday.
The firm has also not yet sealed any potential investments in the company, according to the statement.
“The group will manage its financing arrangement with lenders as part of the group’s ordinary course of business, and is not aware of any deadline for resetting the group’s financing terms,” NWD said in the statement.
NWD’s shares have swung wildly this year amid recurring speculation and media reports that the company would introduce new investors to alleviate its financial stress and improve its balance sheet.