The Hong Kong based company, New World released an announcement on Thursday regarding their approach in business which will continue to operate normally and will focus on developing its main real estate business, which includes selling the residential projects in Hong Kong and diversified projects in the mainland. Meanwhile on Friday, the stock price of the company began with 1.72% and it reached the maximum of 4.26 Yuan.
In addition to that, New World Hebei plans to sell their K11 Art Mall for 9 billion Yuan but the report states that their plan is deadlocked and China resources Longdi has come forward willingly to offer only 6 billion Yuan. The area of the K11 Art Mall which is located in Tsim Sha Tsui is 335,939 square feet. The average price per square feet is calculated as NT$26,800.
The decision to sell K11 Art Mall arose due to the increasing indebt ratio to 92% as of June 2024 which surpassed the previous year stat of 83%. This has turned the company as the most indebted large developer in Hong Kong and the total indebt of the company is HK$192.8 billion, according to Bloomberg Intelligence.
“New World faces the worst plight of a major Hong Kong developer since the Asian financial crisis” said the analyst of Bloomberg Intelligence, Patrick Wong
