A consortium of Hong Kong investors led by the family of New World Development chairman Cheng Yu-tung said it would continue its commitment to the Riverside South development in Manhattan and rejected speculation of a pull-out.
Mr Cheng's eldest son, Henry Cheng Kar-shun, who is also New World managing director, said the consortium had no intention of backing out of the New York project, which was progressing well.
The Riverside South development would include 17 residential buildings containing 5,700 flats when completed.
The consortium, comprising the families behind New World and Shui On Construction & Materials, saved the project from failure in 1994 by buying out United States businessman Donald Trump's mortgage for US$89 million.
Yesterday's New World statement was made in response to rumours that the Hong Kong consortium might back out of the project following the US Department of Housing and Urban Development's rejection of $180 million in government mortgage insurance for buildings E and F of the project.
Mr Henry Cheng said: 'Buildings D and C, with financing coming from commercial banks, will be completed before the end of this year and before mid-1999 respectively.' Building D was being rented out at present and market response had been good, he said.