New World to invest 14.52 billion yuan in upscale Shenzhen projects

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New World Development executive vice-chairman and joint general manager Adrian Cheng Chi-kong . Photo: K. Y. Cheng

Published: 10:13pm, 8 Dec 2016Updated: 10:28pm, 8 Dec 2016

Hong Kong property conglomerate New World Development has committed to invest 14.52 billion yuan (HK$16.34 billion) under joint venture vehicles that will develop four high-quality parcels of land at Prince Bay in Shenzhen.

New World, through subsidiary New World China Land, and a wholly owned unit of China Merchants Shekou Industrial Zone Holdings, had formed an offshore joint venture arrangement and an onshore joint venture scheme to participate in the public tenders and acquisition of those plots of land for development.

“The group once again successfully bid for high-quality land parcels in the core area of Shenzhen, reflecting the determination to enhance asset portfolio and further strengthen the brand position of New World in mainland China,” Adrian Cheng Chi-kong, executive vice-chairman and joint general manager of the New World Group, said in a statement on Thursday.

In a filing to the Hong Kong stock exchange, the company said its total capital commitment to the offshore joint venture is 9.16 billion yuan.

That corporate vehicle will develop a 32,581 square-metre site called GL Land and a 33,349 square-metre parcel known as ER Land for “long-term commercial properties held for investment purposes”.

New World estimated a total investment of 5.36 billion yuan in the onshore joint venture scheme, which covers a 13,951 square-metre plot called SD Land and a 14,054 square metre site known as LW Land.