Hong Kong-based property company New World Development has agreed to sell a local shopping mall for HK$4.02 billion (US$514 million) to its rival Chinachem Group.
The sale of D-Park Mall and its 1000-space car park in Tsuen Wan is the biggest shopping space transaction since 2018, data from Colliers shows.
New World recently announced its plan to offload non-core assets worth up to HK$8 billion to improve its balance sheet.
According to Reuters, the company has one of the highest debt ratios in Hong Kong’s property sector. The firm posted a 12 per cent increase in core profit for the fiscal half through December.
New World Development was founded in 1970 and publicly listed in Hong Kong in 1972. Its core business areas include investment in property and property development, and investment in and/or operation of hotels.
