New World teams with Chinese state firm for Hong Kong property project
NEW World Development is partnering with Chinese state-owned developer China Resources Land to build a residential project in Hong Kong’s Northern Metropolis, underscoring the increasingly active role that mainland firms play in the city’s property sector.
The two will provide about 1,800 homes on sites held by New World, one of the few developers owning vast agricultural land in the area, according to a joint statement on Wednesday (Dec 27). The Northern Metropolis plan, introduced by the city’s previous chief Carrie Lam in 2021, aims to turn the majority of the New Territories bordering Shenzhen into a tech hub with science parks and homes.
New World could reduce its investment by joining forces with the state developer, easing the burden on the company at a time when it is trying to trim debt. The move aligns with Beijing’s push to integrate Hong Kong into the Greater Bay Area.
The secretary-general of the China Liaison Office, which represents the Chinese government in Hong Kong, was present at the signing ceremony.
Hong Kong plans to create four major zones including high-end professional services and logistics, innovation and technology, commerce and industry, and conservation and tourism. The government estimates that the Northern Metropolis can provide 500,000 new homes.
The joint project, located in Yuen Long district, is in the professional services and logistics zone. Construction will begin next year.
New World said it could unlock agricultural land value and create return for shareholders.
The most indebted among its large peers, New World has seen its shares tumble 47 per cent this year due to concerns about its financial health. The company plans to lower costs by leveraging partnerships to develop its 15 million square feet of agricultural land in the metropolis zone. BLOOMBERG
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