New World Development(0017) and alternative investment manager Ares Management, co-owners of the commercial complex 83 Wing Hong Street in Cheung Sha Wan, have reduced prices for some of the units, Bloomberg cited people familiar with the matter said.
Compared to the price when the project launched in 2024, the reduction, including discounts and rebates, is as high as 57 percent.
NWD and Ares have released some units for sale in recent weeks for HK$5,600 per square foot after discounts and rebates, with others priced at around HK$7,000 per sq ft, which is a significant decline from the HK$13,000 per sq ft when sales first launched in 2024.
Meanwhile, the price also fell below NWD’s original land acquisition cost of HK$8,000 per sq ft in 2017.
Standard Chartered(2888), which provided a US$200 million (HK$1.56 billion) loan to Ares in 2022 for this project, has reportedly approached private credit investors to consider offloading the credit facility.
