![New World sells its interest in D-Park mall in Tsuen Wan to rival Hong Kong developer Chinachem for US$510 million](https://www.naphjas.com/wp-content/uploads/2024/03/b62c9ff1-2142-4e20-b360-22161e6e0a16_f3e8d381.jpg)
01 Mar New World sells its interest in D-Park mall in Tsuen Wan to rival Hong Kong developer Chinachem for US$510 million
Posted at 06:07h
in Asia
New World Development (NWD) has agreed to dispose of its shopping centre and parking spaces in Tsuen Wan, selling them to rival Hong Kong property company Chinachem Group for HK$4.02 billion (US$510 million) as part of plans to reduce its heavy debt load.
The move is in line with the company’s ambitious plan to reduce its gearing ratio to the mid to high 30s by financial year 2027, from the current level of around 50 per cent.
NWD will continue to dispose of noncore assets and has been “continuously optimising its assets portfolio while also seeking suitable investment opportunities to further boost shareholder returns”, it said in a joint statement with Chinachem on Friday.
However, NWD needs to accelerate its debt-reduction efforts, Citi analyst Ken Yeung said in a research report on February 29, after the company reported a year on year fall of almost 13 per cent in profit attributable to shareholders from continuing operations to HK$502 million.
NWD’s gearing ratio crept up to 49.9 per cent at the end of 2023 from 48.7 per cent in June of the same year, according to Citi.
Its plans to trim this include disposal of noncore assets. The developer revised up its disposal target this year from HK$6 billion to HK$8 billion.
Chinachem believes that the acquisition of what is considered a premium regional shopping mall will create synergy with its other investments in Tsuen Wan which include Nina Mall 1 & 2, Nina Hotel Tsuen Wan West and Nina Park.