New World Development forecast to raise US$1b from hotels spin-off
Separate listing for hospitality assets seen as part of succession plan for family-run group
New World Development is expected to raise US$800 million to US$1 billion from the spin-off of its hospitality assets.
Bloomberg quoted two people with knowledge of the matter as saying the developer might seek as much as US$1 billion from the spin-off, which is expected to be completed in the second or third quarter.
The company has appointed Deutsche Bank, HSBC, JP Morgan Chase, BOC International and Standard Chartered to handle the sale.
Most of the assets to be spun off are in Hong Kong.
The company was unavailable to comment on the reports yesterday.
Last Friday, the developer announced it was considering the possibility of spinning off certain hospitality assets.
CLSA said the spin-off could form a separate vehicle for funding if the company expanded its hotel portfolio, which requires heavy capital expenditure and a longer payback period.