New World, Abu Dhabi Investment Authority are seeking to refinance HK$9.25 billion hotel loan
NEW World Development and Abu Dhabi’s sovereign wealth fund are planning to refinance a HK$9.25 billion (S$1.6 billion) syndicated loan that’s related to the acquisition of three luxury hotels in Hong Kong, according to sources with knowledge of the matter.
Banks have been tapped about the potential refinancing in recent weeks, said the sources, asking not to be identified discussing private matters. The new facility is likely similar in size to the 2015 loan, which was refinanced by New World and Abu Dhabi Investment Authority in 2018. Renaissance Harbour View Hotel, Hyatt Regency Hong Kong, Tsim Sha Tsui, and Grand Hyatt Hong Kong are the loan’s underlying assets.
The loan was extended by one year in 2023 and is now due in June, said two of the sources. The borrowers have asked for three-year and five-year price quotes, according to one of the sources. Details of the new loan are still under discussion.
Controlled by the US$26 billion family empire of tycoon Henry Cheng, Hong Kong-based New World Development has been caught in the financial hub’s property-sector slump hitting residential homes to office spaces. New World shares fell to a 21-year low earlier this week amid concerns over its debt leverage, even as the family boosted its stake in the firm. The stock rose 4.2 per cent on Thursday (Jan 18).
New World did not immediately offer a comment. The Abu Dhabi fund did not immediately reply to a request for comment.
Hong Kong’s ties with Middle Eastern investors have been growing in recent years. Another luxury hotel, Regal Hotels International Holdings, partnered with the Ministry of Investment of Saudi Arabia to build about 100 hotels around the world in a deal worth US$5 billion. BLOOMBERG
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
US single-family housing starts, permits fall in April
Strong demand for ECs could spur competition for Pasir Ris GLS site
Punggol Digital District to open from Q3 with 65% of space pre-committed
Retail units at 20 Cecil Street for sale from S$3.8 million
China property stocks gauge jumps on proposal for home purchases
ESR eyes fourth data centre in Japan