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Hong Kong property
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Hong Kong’s New World Development denies sale of K11 Atelier stake, citing ‘robust cash reserves’

  • The company has US$13.4 billion in capital and ‘no plans to sell any stake in K11 Atelier King’s Road’
  • The developer, owned by the family of billionaire Henry Cheng Kar-shun, issued a statement following a published report

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K11 Atelier King’s Road opened in 2019. Photo: Kevin Mak
Yulu Ao
Hong Kong property giant New World Development on Thursday touted its strong liquidity position and HK$105 billion (US$13.4 billion) in capital available for investments in the Greater Bay Area, as it sought to douse market speculation about a sale of one of its K11-branded assets.

New World “has no plans to sell any stake in K11 Atelier King’s Road”, it said in a statement issued after a Reuters report said it was in talks to sell most of its stake in the HK$11 billion office tower, which is located in Hong Kong Island’s North Point district.

The company, owned by the family of billionaire Henry Cheng Kar-shun, has no plans to sell any other K11 properties either, the statement added.

“We are in a very strong liquidity position with robust cash reserves,” the statement said, adding that as of June 30, 2022, New World held HK$62.2 billion in cash and bank balances and HK$42.8 billion in undrawn loan facilities.

The HK$11 billion K11 Atelier building features a market area with a rotating roster of vendors. Photo: Handout
The HK$11 billion K11 Atelier building features a market area with a rotating roster of vendors. Photo: Handout

“These funds are more than sufficient to allow us to seek new investment opportunities and create long-term value for the group as we expand in the Greater Bay Area,” a spokesperson said, adding that the company made a tender offer in December to buy back bonds and perpetual notes amounting to HK$6.5 billion, backed by its cash reserves.

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