Hong Kong property development group New World Development has said it is in talks to sell its entire stake in the Kai Tak Sports Park project to its parent company, Chow Tai Fook Enterprises.
New World made the announcement yesterday (Thursday) as it detailed wider restructuring plans following the declaration of its first financial loss in two decades. New World reported a net loss of HK$11.8bn (£1.13bn/€1.36bn/$1.52bn) from continuing operations and HK$7.9bn from discontinued operations for the year ending June 30, 2024, as opposed to a net profit of HK$548m during the previous 12-month period.
The company’s full-year revenues from continuing operations also dropped 34% year-on-year to HK$35.8bn, with Adrian Cheng announcing his resignation as CEO. Kai Tak Sports Park Ltd (KTSPL) was formed as a subsidiary of New World and NWS Holdings to oversee the design, build, construction and operation of the multi-venue development.
KTSPL is 75% owned by a New World unit, according to Reuters, with talks now taking place for Chow Tai Fook Enterprises to take control.
Speaking today, Hong Kong’s Secretary for Culture, Sports and Tourism, Kevin Yeung Yun-hung, told The Standard that the government has received the relevant applications and will consider them in accordance with current contractual terms.
Yeung also expressed confidence that the plans for the Sports Park could be implemented as scheduled amid New World’s announcement.
Earlier this month, Yeung stated that Kai Tak Sports Park is on course to open in March, as the 50,000-seat stadium that anchors the complex achieved technical compliance status from the government.
Kai Tak Sports Park celebrated another construction milestone by announcing that Kai Tak Stadium had recently achieved technical compliance following a series of rigorous tests.
All three of the complex’s major event venues – Kai Tak Stadium, the 10,000-seat Kai Tak Arena and the 5,000-capacity Kai Tak Youth Sports Ground – have now met all the required standards and regulatory requirements and are nearing completion.
The main structure and facility work will be completed by the end of the year, after which point the complex will be ready to start hosting events.
Kai Tak Sports Park has been designed by Populous and its lead operator is ASM Global. It will host TheStadiumBusiness Asia from October 16-18.
