Hong Kong’s New World Development is in talks to sell the K11 Art Mall in Tsim Sha Tsui to state-run China Resources.
The property developer is currently in “late stage of discussions” with China Resources Longdation, Mingtiandi reported in an article last week. The news agency cited market sources that China Resources was offering HK$9 billion ($1.2 billion) for the asset.
K11 Art Mall first opened its doors in December 2009. The shopping centre has seven storeys, including five above-ground levels and two basement floors, and a two-storey basement parking lot.
As of December 31, the mall’s occupancy rate reached nearly 100 per cent, New World’s interim results showed. The property generates HK$40 million in monthly rental income, according to local media reports.
The sale is part of New World’s plans to cut its net gearing ratio to the “mid to high” 30 per cent range by June 2027 from 49.9 per cent as of late last year.
The company has divested HK$59.6 billion of assets during the past three fiscal years, including the D-Park mall, the 695-key Pentahotel in Kowloon, and a 51 per cent stake in a Cheung Sha Wan office project.
New World’s shares dropped more than 14 per cent in early trading on Monday after it estimated a net loss of up to HK$20 billion for the year ended in June, according to Reuters.
