Hong Kong developer New World Development (NWD) secured some much-needed financial relief by hitting a 2025 property sales target of HK$26 billion (US$3.3 billion) and winning a commitment from creditors to refinance HK$87.5 billion of its debt, people familiar with the matter said on Friday.
With a strong sales response for its jointly owned Deep Water Pavilia project in Wong Chuk Hang on the south side of Hong Kong Island, NWD was expected to hit the contracted sales target for the financial year that ends on Monday, according to a source familiar with the matter.
Deep Water Pavilia has 447 units in total, with sizes ranging from 408 to 3,120 sq ft. It was jointly developed by five developers, including NWD, which owns 50 per cent of the property. The other partners are Empire Group, CSI Properties, Lai Sun Development and MTR Corp. As of June 26, the group had sold 341 units with total sales of HK$6.3 billion, the company said.
“The property sales and creditors’ commitments to refinance the US$87.5 billion are positive news for NWD,” said Tom Chan, permanent honourable president and director of the Institute of Securities Dealers.
The developer received backing from banks for its HK$87.5 billion loan refinancing before its Monday deadline, according to another source.
The refinancing deal was reportedly backed by some 40 assets, including the company’s New World Tower headquarters and its Victoria Dockside complex in Tsim Sha Tsui. Bloomberg earlier reported that New World was in the market for a separate HK$15.6 billion loan secured against Victoria Dockside to support the broader refinancing exercise.
The development marked the end of a months-long negotiations for a debt package that sought to pull NWD back from the brink of default.
