New World Development Secures HK$88.2 Billion ($11.2 Billion) Refinancing, Plans 11 Skies Sale; McDonald's Markets HK$1.2 Billion Hong Kong Properties

Hong Kong-based real estate developer New World Development secured a record HK$88.2 billion ($11.2 billion) refinancing deal on June 30, concluding months of high-stakes negotiations with banks. This refinancing is the largest-ever borrowing in Hong Kong's property sector and helped the distressed developer avoid an imminent debt crisis. Despite closing the refinancing, New World Development continues to face financial challenges, missing a self-imposed deadline to complete an additional up to $2 billion loan led by Deutsche Bank. The company is also seeking to divest real estate projects in mainland China and is reportedly planning to sell the yet-to-open 11 Skies mall at Hong Kong International Airport, a property valued between HK$15 billion and HK$17 billion, into which it has invested at least HK$20 billion. Meanwhile, McDonald's is marketing eight prime retail properties in Hong Kong valued at approximately HK$1.2 billion ($153 million) through a public tender, with bids closing on September 16, amid a weak real estate market in the city.