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A potential sale of 11 Skies, a mall located near Hong Kong’s international airport in Chek Lap Kok, could help New World Development (NWD) lighten its debt burden as the developer steps up efforts to divest noncore assets to overcome its worst financial crisis, according to UBS.
“Any successful disposal of 11 Skies could be a positive catalyst for NWD,” analysts at the Swiss bank said in a report on Thursday. The project “is embedded with contingent liabilities” of HK$1.8 billion (US$229.3 million) in guaranteed annual rental payable to the Airport Authority from 2028, it added.
The beleaguered developer has held early-stage talks with the Airport Authority to discuss its plans for the asset, Bloomberg reported, citing people it did not identify.
11 Skies offers 3.8 million sq ft of gross floor area for mixed-use purposes, to be ready in phases from mid-2026. The project sits between Hong Kong International Airport and the Hong Kong-Zhuhai-Macau Bridge.
The HK$20 billion complex forms part of SkyCity, which will have more than 800 shops, 120 dining options, an indoor entertainment hub and three high-grade office towers.
NWD had HK$146.5 billion of bank loans, other loans and fixed rate bonds and notes payable on December 31, according to its accounts published in March. Its consolidated net debt stood at HK$124.6 billion, with net gearing rising to 57.5 per cent from 55 per cent a year earlier.
