New World steps up asset sale push to meet HK$27 bln target by June, Bloomberg reports

New World Development (0017) is stepping up efforts to offload at least one asset by the end of June as it seeks to meet a HK$27 billion sales target and return to positive cash flow, Bloomberg News reported, citing people familiar with the matter.

The developer told investors at recent meetings that it is working to achieve positive cash flow in the financial year ending June and is accelerating asset disposals to plug a multibillion-dollar funding gap, the sources said, according to the report.

While the company has not disclosed which assets may be sold or the size of any potential transactions, some investors estimate the shortfall could exceed HK$8 billion, the report said.

It said New World is leaning toward selling a core Hong Kong asset, though weak investor appetite has complicated plans to dispose of other projects.