HONG KONG, June 29, 2020 /PRNewswire/ -- New World Development Company Limited ("New World Group" or the "Group", Hong Kong stock code: 17) announced today the successful disposal of two non-core assets in Hong Kong, generating HK$3.6 billion in cash for the Group.
The Group disposed the entirety of its 45% interest in the company which owns certain properties at Shun Tak Centre, Sheung Wan, together with the Group's EIGHT KWAI FONG, a serviced apartment located in Happy Valley which was completed in 2015, at the consideration of approximately HK$2.36 billion and HK$1.21 billion respectively.
For the Group's 45% interest in the company which owns certain properties at Shun Tak Centre, it involves shopping arcade's lettable area of 214,486 sq ft, office's gross area of 13,827 sq ft and 85 carparks. The total saleable floor area of EIGHT KWAI FONG held by the Group is approximately 49,000 sq ft, involving 139 serviced apartment units.
In the fiscal year 2020, New World Group has to date successfully disposed of non-core assets of over HK$10 billion. In the short to medium term, the target of non-core assets and businesses disposal is approximately over HK$15 billion, which will provide additional cash inflow for the Group. This will further strengthen the Group's ample cash position.
The Group has been actively carrying out structural and asset optimisation as part of its long-term core development strategy, disposing of non-core assets and businesses, realising value and improving efficiency in order to strive for the best interests of the Group and its shareholders. The Group will continue to proactively review its businesses and explore asset optimisation opportunities in the future. The Group is optimistic about Hong Kong and GBA, which will continue to be a core focus of the business.
About New World Development Company Limited
Founded in 1970, New World Development Company Limited ("The Group", Hong Kong stock code: 0017) was publicly listed in Hong Kong in 1972 and is a constituent stock of the Hong Kong Hang Seng Index. A premium brand infused with a unique personality best defined by The Artisanal Movement, New World Group's core business areas include property development, property investment, road, aviation, construction and insurance. Its operations in Greater China, especially the Greater Bay Area, had a total asset value of approximately HK$593.5 billion as at 31 December 2019. The Group has an effective interest of approximately 61% in NWS Holdings Limited (Hong Kong stock code: 0659) and approximately 75% in New World Department Store China Limited (Hong Kong stock code: 0825) and wholly owns New World China Land Limited.