New World Development (NWD) and its transport and construction unit, NWS Holdings, are in talks with the government to convert a Private Sector Participation Scheme (PSPS) housing project in Ngau Chi Wan into private flats.
NWS group director Stewart Cheng Kam-chiu said companies of the group were pursuing a change in the status of the 2,010-unit Kingsford Terrace, which is jointly owned by NWS, its parent NWD and privately run Chow Tai Fook Holdings. Chow Tai Fook is the controlling shareholder of NWD.
Shares of NWS yesterday rose 18.12 per cent to $8.20, a day after the government revealed it had approved the conversion of NWS's 50-per-cent-owned Hunghom Peninsula, also built under the PSPS, into a private development.
The remaining 50 per cent of the 2,470-unit Hunghom project is now owned by Sun Hung Kai Properties (SHKP), which agreed to buy the stake from Wai Kee Holdings for $593.2 million, according to an announcement by Wai Kee on Tuesday.
The two completed developments are the final PSPS projects following the government's decision to halt sales of subsidised housing to regulate new flat supply.