New World gets $5.9 billion loan by pledging Victoria Dockside

New World Development (0017) said it has reached an agreement for a HK$5.9 billion loan facility from Deutsche Bank by pledging Victoria Dockside as collateral.

The local developer has agreed with the lender for an up to 5.9 billion term loan facility, with an initial committed tranche of up to HK$3.95 billion, according to a filing on Thursday. 

The initial tranche will be used for the group’s ordinary course financing activities, it said. 

The facility is secured by a first-ranking mortgage over Victoria Dockside, which comprises five major components, namely “K11 ARTUS”, “K11 ATELIER”, “K11 MUSEA”, Rosewood Hong Kong, and certain carparks and assets that are related to Victoria Dockside, New World said. 

The group retains the ability to use the property as security to obtain additional financing to support its ongoing business needs, it added.