(Jan 29): Blackstone Inc is in advanced talks to become the single largest shareholder of New World Development Co, according to people familiar with the matter, a move that would see one of Hong Kong’s richest families relinquish control of a major asset.
Under the proposed deal, the US company would be able to restructure the embattled developer and New World could continue to try to offload assets to shore up liquidity, said the people, who asked not to be identified discussing private matters.
The family of Hong Kong tycoon Henry Cheng currently holds about 45% stake in New World. It’s unclear how much of the company Blackstone would own after the deal and what it would pay the Cheng family for the stake, said the people. But such an agreement would offer a crucial vote of confidence for a Hong Kong developer that has struggled to manage its debt.
If the Cheng family were to surrender its hold over New World to the US company, it would mark a pivotal moment, underscoring the challenges the builder has faced in trying to find more funding and sustain its operations. New World, one of Hong Kong’s most indebted developers, was pushed to the brink of default last year after a debt-fuelled expansion collided with a deep property slump.
A record last-minute refinancing last year saved the firm from joining an unprecedented wave of defaults amid a broader Chinese real estate crisis.
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New World had a market capitalisation of around HK$28 billion at the end of Hong Kong trading on Thursday. Its shares have jumped more than 50% this month as optimism grows about a turn-around, although they are still down more than 90% from the all-time high set in 1997.
Blackstone’s interest in New World is a sign of the changing mood in Hong Kong’s beleaguered property market, where residential prices broke a three-year slide in 2025 and international financial institutions have started to sign deals for office space. New World, whose business is exposed both to residential and commercial property, was badly hit by the years-long slump in the city’s real estate market.
The move also highlights Blackstone’s focus on acquiring value-rich assets in stressed markets and scaling platforms, with the deal handing it control of a large portfolio of malls and office towers.
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It isn’t known whether the Cheng family would inject any capital into New World as part of the deal. The family had earlier considered contributing about HK$10 billion in equity to the debt-laden builder.
New World and Chow Tai Fook Enterprises Ltd, the family’s investment vehicle, didn’t reply to requests for comment. A Blackstone media representative declined to comment.
The first major hint of New World’s troubles emerged in 2024, when the developer reported its first loss in two decades. By mid-2025 its problems had deepened: net debt had reached about 98% of shareholder equity, according to Bloomberg Intelligence, making it one of the most leveraged major developers in Hong Kong.
New World last year secured a record US$11 billion loan refinancing deal and trimmed about US$1.2 billion from its debt load through a bond swap plan. The company has been racing to sell at least one asset by the end of June to meet a self-imposed HK$27 billion sales target and generate positive cash flow.
Potential divestment candidates have included the Cheng family’s high-profile Rosewood Hotel Group, people familiar with the matter said earlier. The company has also explored selling mainland China real estate projects, including its landmark K11 developments in Hangzhou, Shenzhen and Shanghai.
Founded in 1970 by Cheng Yu-Tung, a former gold shop apprentice from mainland China’s Guangdong province, New World is one of Hong Kong’s “Big Four” property developers. The family-owned company has built scores of apartment blocks throughout the city and owns iconic assets including the sprawling commercial complex Victoria Dockside along Hong Kong’s famous harbour.
Now worth US$31.7 billion, the Chengs are one of the richest families in Asia, according to the Bloomberg Billionaires Index.
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Relinquishing control of New World would be notable in Hong Kong’s tycoon world, where family legacy is honoured — future generations are responsible for protecting and carrying on the family business. All of the largest developers in the city are still tightly controlled by the founding families, including Li Ka-shing’s CK Asset Holdings Ltd and the Kwoks’ Sun Hung Kai Properties Ltd.
Even though the Chengs initially made their fortune with their jewellery business, it was New World that elevated the family as one of the city’s most influential clans.
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