13th May 2026 – (Hong Kong) Blackstone has abandoned talks on a proposed US$4 billion investment in New World Development after the Hong Kong developer declined to give up control, according to Bloomberg, ending months of negotiations.
New World, among the city’s most highly leveraged builders, has been seeking to refinance borrowings and shore up liquidity amid tight credit conditions and a subdued office market. The Cheng family, which holds 45.24% of the company via Chow Tai Fook Enterprises, has been exploring equity sales with several investors but has resisted any change of control.
Since March, other parties — including a consortium led by RRJ Capital and Ares Management — have discussed minority stakes that would keep the Chengs as the largest shareholder. Progress has been limited, with would‑be investors reportedly insisting that about HK$70 billion of liabilities tied to the long‑term lease of the 11 SKIES project be addressed first.
As part of those conditions, New World is negotiating with Airport Authority Hong Kong to unwind the original 11 SKIES agreement and transfer a shopping mall, valued at roughly HK$30 billion, to the authority at no cost, people familiar with the matter said.
The developer has also been in talks to sell assets, including the K11 Art Mall in Kowloon, though no buyer has been secured. Shares in New World — with a market capitalisation of about US$3 billion — have risen roughly 29% year‑to‑date but closed down 1.37% on Wednesday. Blackstone declined to comment, and New World did not immediately respond to requests for comment.
