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29 Jun

New World Group Hits HK$10 Billion of Non-core Asset Disposals

• Latest sale of two Hong Kong property assets generates additional HK$3.6 billion

• Further strengthens cash position with ample resources for growth in the Guangdong-Hong Kong-Macao Greater Bay Area

New World Development Company Limited ("New World Group" or the "Group", Hong Kong stock code: 17) announced today the successful disposal of two non-core assets in Hong Kong, generating HK$3.6 billion in cash for the Group.

The Group disposed the entirety of its 45% interest in the company which owns certain properties at Shun Tak Centre, Sheung Wan, together with the Group’s EIGHT KWAI FONG, a serviced apartment located in Happy Valley which was completed in 2015, at the consideration of approximately HK$2.36 billion and HK$1.21 billion respectively.

For the Group’s 45% interest in the company which owns certain properties at Shun Tak Centre, it involves shopping arcade’s lettable area of 214,486 sq ft, office’s gross area of 13,827 sq ft and 85 carparks. The total saleable floor area of EIGHT KWAI FONG held by the Group is approximately 49,000 sq ft, involving 139 serviced apartment units.

In the fiscal year 2020, New World Group has to date successfully disposed of non-core assets of over HK$10 billion. In the short to medium term, the target of non-core assets and businesses disposal is approximately over HK$15 billion, which will provide additional cash inflow for the Group. This will further strengthen the Group’s ample cash position.

The Group has been actively carrying out structural and asset optimisation as part of its long-term core development strategy, disposing of non-core assets and businesses, realising value and improving efficiency in order to strive for the best interests of the Group and its shareholders. The Group will continue to proactively review its businesses and explore asset optimisation opportunities in the future. The Group is optimistic about the Guangdong-Hong Kong-Macao Greater Bay Area, which will continue to be a core focus of the business.