New World Development sells HK$3 billion stakes in two Hong Kong shopping malls to rail operator MTR Corp
- The developer has sold a 50 per cent stake in the Telford Plaza II in Kowloon Bay and a 21 per cent share of PopCorn 2 in Tseung Kwan O
- New World said it will continue to dispose of non-core assets to ‘recycle capital’ for the development of its core businesses
New World Development has sold its interest in two Hong Kong shopping malls to MTR Corporation, the city’s sole rail operator, for HK$3 billion (US$385 million) as the local retail sector slips into a deep slump.
The developer said the sale of the “non-core” assets, a 50 per cent stake in the Telford Plaza II in Kowloon Bay and a 21 per cent share of PopCorn 2 in Tseung Kwan O, was part of its strategy to fine-tune its asset structure.
New World Development will continue to dispose of non-core assets to “recycle capital” for the development of its core businesses, the company said in a statement.
“New World Development is committed to enriching its assets and business portfolios in Hong Kong and mainland China to increase recurring income,” it added.
It said that between 2019 and 2026, the total gross floor area of the company's investment properties in Hong Kong and China would increase by three times and six times respectively.
The sales come as Hong Kong’s economy grapples with a recession for the first time since 2009 following months of social unrest last year.
The Covid-19 epidemic that originated in China’s Hubei province is now weighing on local retailers and developers. It has claimed more than 2,600 lives and infected about 80,000 people worldwide.
Hong Kong reported 85 confirmed cases of the virus, with two deaths, as of Tuesday.