(Bloomberg) -- Embattled Hong Kong developer New World Development Co. sold an industrial building in the city’s Kowloon area for HK$620 million ($80 million), Sing Tao Daily reported, citing unidentified people.
The 22-story tower Artisan Lab is located in the industrial area of San Po Kong. The sale is part of the developer’s plan to offload non-core assets to alleviate a liquidity crunch at the city’s most indebted major real estate firm.
On top of its financial struggles, New World has experienced a series of management changes in recent months, raising concerns over its leadership. Just two months after the dramatic departure of third-generation scion Adrian Cheng, the company again replaced its chief executive officer late last month.
New CEO Echo Huang is expected to continue the company’s strategy to improve its finances including by disposing of lower-quality assets. New World’s net debt to equity ratio rose to 92% as of June 30, up from 83% at the end of last year, according to data from Bloomberg Intelligence.
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