New World Development Optimises Its Asset Portfolio with NWS Holdings’ Disposal of HK$1.3 Billion in Non-core Businesses in FY2019
New World Development Company Limited has recently optimised the asset portfolio of the Group with the disposal of some HK$2.3 billion worth of non-core properties, including two industrial projects in Kwun Tong, and some carpark spaces. The Group announces today that it has further enhanced its business portfolio through its subsidiary NWS Holdings Limited (“NWS”) by disposing of several non-core businesses in FY2019 at a total consideration amounting to approximately HK$1.3 billion.
The non-core NWS businesses include a parking management company operating in Mainland China, minority interests in two port projects in Mainland China, and a reduction in the interest held in Beijing Capital International Airport Co., Ltd (“BCIA”).
In FY2019, NWS actively implemented its development strategy of optimising its business portfolio, where non-core businesses have been disposed of to unlock value and enhance resource efficiency. During this period, the businesses NWS has disposed of include Urban Parking (Beijing) Limited, as well as its 24.5% shareholding interest in Tianjin Orient Container Terminals Co., Ltd. and an 18% shareholding interest in Tianjin Five Continents International Container Terminal Co., Ltd., and a reduction of its interest in BCIA and other assets. The total consideration of the businesses and assets which have been disposed amount to approximately HK$1.3 billion.
Core businesses such as toll roads and aircraft leasing continue to provide NWS with strong recurring cash flow. NWS has also been actively identifying acquisition opportunities for projects with exciting growth potential and strong cash flow, in order to further strengthen the long-term development of its core businesses.
Goshawk Aviation Limited (“Goshawk”), the aircraft leasing platform under NWS, is also expanding rapidly. Following the completion of the acquisition of Sky Aviation Leasing International Limited in September 2018, in June this year Goshawk also completed its inaugural ABS (Asset-Back Securitization) issuance, raising US$643.6 million (HK$5.02 billion). This ABS issuance not only provides the opportunity for Goshawk to recycle its capital for growth, but also to venture into the aircraft management business and open up new income sources, thereby laying a solid foundation for its further development.
Recently, New World Development announced completed transactions for non-core properties, including two industrial projects with a total of 160,000 sq ft. at Tsun Yip Street, Kwun Tong. In addition, the disposal of 169 carpark spaces at Riviera Gardens, Tsuen Wan, was completed, and a preliminary SPA was signed, with deposit paid, for a commercial property on Hong Kong Island.
New World Development, with its subsidiary NWS, will continue to optimise its business portfolio and seek new investment opportunities to strengthen its core business development, with a view to maximizing the interests of shareholders and enhancing the investment value of the Group.