Henry Cheng's wife buys two State Pavilia flats

Staff reporter

New World Development (0017) sold two flats at its State Pavilia residential project in North Point to Katherine Ip Mei-hing for HK$14.86 million, the wife of the developer's chairman Henry Cheng Kar-shun.

NWD said the net proceeds would supplement the general working capital of the firm and strengthen its liquidity and financial position, in to a filing to the Stock Exchange of Hong Kong.

Prior to Ip's purchase, chief executive Echo Huang Shaomei bought a unit and a car parking space at State Pavilia for HK$54.88 million, or HK$36,058 per square foot.

Huang was appointed for the role last November, being the third chief for the leading developer for three months following Adrian Cheng Chi-kong and Eric Ma Siu-cheung.

State Pavilia forms part of NWD's redevelopment of the historic State Theatre.

Its first price list last week shook the property market with discounts of up to 25 percent compared with nearby new projects, and the cheapest home was priced HK$16,888 per square foot after discounts.

The lower prices attracted over 4,800 cheques as of yesterday, nearly 29 times the 168 units to be put for sale in the first round scheduled on Saturday.

New World raised prices cautiously by 2.5 percent in the second list and rolled out the third list yesterday to offer 39 units costing between HK$6.35 million and HK$20.93 million after discounts.

New World has been surrounded by concerns about default risks, with some banks having reportedly rejected accepting its stocks as collateral for margin financing.

Last month, it said it continues to carry on business as usual and had refinanced about HK$17.76 billion of its bank loans since July 2024.

Besides New World, developers continue to pour new homes into the market.

Vanke Hong Kong plans to launch its project in Tai Po by the end of March at the earliest. The project, developed in three phases, involves 1,650 units.

KT Marina in Kai Tak also disclosed its fourth price list to offer 108 units, with 38 select of them to enjoy discounts of up to 34 percent. The project is developed by K Wah International (0173), Wheelock Properties and China Overseas Land & Investment (0688).