New World Development (0017) said on Wednesday that it will terminate its contractual agreements for the 11 SKIES project with Airport Authority Hong Kong on April 1, 2027.
NWD said its significant shareholder Chow Tai Fook Enterprises (CTFE) has granted the Airport Authority an option of HK$1 to acquire from CTFE the shares held by CTFE.
NWD will need to pay an early termination fee of HK$2.3 billion to the Airport Authority.
It had also expanded its facility agreement with Deutsche Bank AG to HK$4.9 billion, up from HK$3.95 billion, building on a deal signed in June.
The developer has recorded a loss for the year between 2025 and 2026 of HK$26.8 billion, primarily driven by non-cash impairment and provisions relating to the 11 SKIES project.
The Airport Authority said the assets related to the project — including three office towers and an entertainment hub — will be transferred to the Airport Authority free of charge.
In addition to transferring the relevant assets, NWD will pay the Airport Authority more than HK$3 billion, comprising cash and cash equivalents.
Airport Authority's chief executive Vivian Cheung Kar-fay said the acquired assets are of excellent quality and ready for leasing. A dedicated subsidiary and professional team will be set up to run the project, aiming to attract top-tier entertainment operators and commercial partners worldwide. Alongside other major SKYTOPIA projects, operations are expected to begin progressively from 2028/29.
Meanwhile, NWD highlighted that it has achieved a turnaround from the last period to a HK$2.23 billion net profit in the period between 2025 and 2026, which proves the developers’ optimal business strategy.
However, its revenue decreased 28 percent year on year to HK$20 billion, due to lower construction revenue and fewer property handovers in the Chinese Mainland, and was partly offset by increased property handovers in Hong Kong.
The capital expenditure amounted to HK$11.8 billion, a 6 percent drop.
The developer declared no final dividend for the year ended June 30, and no dividend was declared for the year.
Total attributable contracted sales from property development projects and asset disposals reached approximately HK$29.6 billion.
Attributable contracted sales in Hong Kong amounted to approximately HK$22.1 billion, mainly driven by residential projects including The Pavilia Farm III, Deep Water Pavilia, Pavilia Rosa, The Legacy, and The Pavilia Forest.
Attributable contracted sales in the Chinese Mainland totaled approximately 6.8 billion yuan (HK$53 billion), with the Southern Region, led by the Greater Bay Area, contributing the largest share at approximately 53 percent.
