New World Development Company Sells HK$3 billion Non-Core Assets, Optimising Assets and Business Portfolios to Increase Cash Flow for the Core Businesses
New World Development Company Limited (“NWD” or the “Group”) announced that the Group sold all of its economic interests in two shopping malls for HK$3 billion yesterday. NWD will continue to optimise its assets and business portfolios, and to dispose of non-core assets to recycle the capital for the development of its core businesses.
In FY2019, NWD and its subsidiary NWS Holdings Limited have disposed of non-core assets worth HK$2.3 billion and HK$1.3 billion, respectively. To further optimise its assets and business portfolios, NWD has signed a legal agreement with MTR Corporation Limited (“MTRC”), selling NWD's economic interest in Telford Plaza II in Kowloon Bay and its economic interest in PopCorn 2 in Tseung Kwan O. The agreement will be completed on or before 31 March 2020.
New World Development is committed to enriching its assets and business portfolios in the Mainland and Hong Kong to increase recurring income. From FY2019 to FY2026, the total GFA of the Group's investment properties in the Mainland and Hong Kong will increase by three times and six times, respectively. Flagship projects of the Group in Hong Kong, China include Victoria Dockside, an integrated development project in Tsim Sha Tsui, and K11 Atelier King’s Road, a Grade A office building on Island East, launched in 2019. When SKYCITY, an integrated commercial and retail development project in Hong Kong International Airport, the Grade A office building on King Lam Street, Cheung Sha Wan, and Kai Tak Sports Park are completed, they will provide sustainable and strong recurring cash flow for the Group.
New World Development will continue to optimise its assets and business portfolios. In addition to disposing of non-core assets in the Mainland and Hong Kong, the Group will look for new projects and acquisition opportunities with growth potential and strong recurring cash flow to strengthen the long-term development of its core businesses and further improve its ecosystem, thus optimising value for stakeholders and enhancing the investment value of the Group.