New World Development (0017) is in talks with Singapore's UOL Group for the sale of its 50 percent stake in Hyatt Regency Hong Kong, Tsim Sha Tsui, marking the latest move for the local developer to bolster liquidity, Bloomberg reported on Tuesday, citing people familiar with the matter.
The potential deal could value the hotel at about HK$3 billion, the report said.
Abu Dhabi Investment Authority, which owns the other half of the hotel, is also in discussions to offload its shares to UOL, the report added.
The move came as the heavily indebted developer seeks to cut debt and improve its balance sheet amid weakness in the Chinese mainland and Hong Kong's property market.
In May, Blackstone had reportedly scrapped a proposed US$4 billion (HK$31.2 billion) investment with NWD after the developer refused to give up control.
Earlier, NWD announced the proposed spin-off and separate listing of its Shanghai K11 assets as a real estate investment trust on the Shanghai Stock Exchange, with the expected 3.24 billion yuan (HK$3.8 billion) net proceeds to be used for loan repayment.
Its shares have dropped more than 19 percent year-to-date, underperforming the 5 percent decrease in the benchmark Hang Seng Index.
