New World reportedly selling major stake in three Hong Kong hotels

Hong Kong developer New World Development (0017) is in talks to sell its stake in three hotels in the city for US$2 billion (HK$15.6 billion), according to a Bloomberg report.

The company is offering a 50 percent stake in a hotel portfolio that includes Grand Hyatt Hong Kong, Renaissance Harbour View Hotel Hong Kong, and Hyatt Regency Hong Kong Tsim Sha Tsui, the report said, citing sources.

Abu Dhabi Investment Authority, the United Arab Emirates’ sovereign wealth fund, owns the other half of the portfolio, it said.

Singapore-based real assets management firm Aravest, with US$9.3 billion assets under management, is among the prospective buyers for the hotels, the news agency said.

The developer is expected to pocket US$300 million from the sale after deducting debts, the report said, adding that the ongoing talks may fall through.

Shares of New World rose 1 percent on Tuesday.

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