Blackstone Group is reportedly close to reaching an agreement and is expected to become the largest shareholder of New World Development!

On January 29, according to media reports citing insiders, Blackstone Group is in deep negotiations to become the largest single shareholder of New World Development. If the deal is completed, the world’s largest alternative asset management company will gain control of New World Development, marking the first time one of Hong Kong’s wealthiest families will relinquish control of the company they founded over 50 years ago.

Sources say Blackstone Group is planning a restructuring of Hong Kong developer New World Development, which is facing financial difficulties. According to the proposed plan, Blackstone would gain effective control of New World Development, while the company’s former major shareholder—the Cheng family—could use this move to advance asset sales, recover funds, and improve liquidity. It is currently unclear how many shares Blackstone will hold after the transaction is completed, and it is also unclear at what price Blackstone will acquire shares from the Cheng family. The Cheng family currently holds about 45% of New World Development’s shares but is under significant debt repayment pressure. If Blackstone takes over, this will be seen by the market as a key confidence signal.

As one of Hong Kong's most indebted developers, New World Development was pushed to the brink of default last year. The company previously relied on debt to fuel its expansion but has been hit by the downturn in the property market.

Previous Contact

Earlier, on August 8, 2025, there were reports in the market that New World Development had preliminary contact with institutions such as Blackstone Group and CapitaLand regarding asset sales. According to reports, Blackstone was negotiating to acquire some of New World’s assets at the time and did not rule out the possibility of promoting privatization in the future, but no concrete plan had yet formed.

In response, New World Development issued a statement on the Hong Kong Stock Exchange clarifying that neither the company nor its controlling shareholder had formal contact with any party regarding equity acquisition.

As one of Hong Kong’s leading property developers, New World Development’s assets include the K11 Art Mall, Hong Kong Convention and Exhibition Centre, and several iconic residential projects.

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