Abu Dhabi’s sovereign wealth fund has agreed to buy 50 percent stake in three Hong Kong hotels belonging to the New World Development group, in a deal worth HK$18.5 billion (US$2.4 billion).
Under the transaction, New World will sell half its interest in Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency Hong Kong hotels to the Abu Dhabi Investment Authority (ADIA).
According to Reuters, it will mark ADIA’s biggest Asian property investment to date.
New World, which has long planned an IPO of its hotel properties, has instead teamed up with ADIA to form a 50:50 joint venture to pursue acquisitions in the hospitality industry, the report said.
New World, founded by tycoon Cheng Yu-tung, plans to use the stake sale proceeds to fund its Hong Kong property development projects.
The three hotels had a market value of HK$21.3 billion as of March 1, according to the report.
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