New World Group hits $1.3b of noncore asset disposals

New World Development Co. has sold two noncore assets in Hong Kong, generating HK$3.6 billion ($460 million) in cash.

The group disposed of the entirety of its 45 percent interest in the company, which owns 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 ($300 million and $160 million), respectively.

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

In the fiscal year 2020, New World Group has successfully disposed of noncore assets of over HK$10 billion (1