New World Development Lists Shanghai K11 Office for Sale Amid Debt Pressure
New World Development is intensifying efforts to offload assets on the Chinese mainland amid continued financial strain, even after securing HKD 88.2 billion in debt refinancing. The company has listed the office component of its K11 property on Middle Huaihai Road in Shanghai—covering floors 11 through 58 and totaling approximately 81,000 square meters of gross floor space—for RMB 2.85 billion. Market interest has been confirmed by a local commercial real estate firm, though New World emphasized that any updates will be made through formal announcements.
Known as the Shanghai Hong Kong New World Tower, or K11 Office Tower, the development is a signature mixed-use complex in Huaihai Road’s commercial corridor. The property spans 116,000 square meters in total, with the K11 Art Mall occupying 35,474 square meters and the office component accounting for 80,549 square meters. A RMB 400 million transformation of the retail space was spearheaded by Adrian Cheng in 2013, making it the first K11 Art Mall in mainland China. Full acquisition of the asset was finalized in September 2021 at a purchase price of RMB 3.375 billion.
The move to sell the property—less than four years after taking full ownership—highlights ongoing liquidity constraints. On June 30, New World disclosed a refinancing deal worth HKD 88.2 billion, extending debt maturity to June 30, 2028. Nevertheless, analysts observed that the arrangement merely rolled over existing debt and did not introduce fresh capital, leaving the company exposed to persistent leverage and interest obligations.
As of December 31, 2024, New World reported net consolidated debt of HKD 124.63 billion—an increase of nearly HKD 1 billion compared to the figure reported on June 30. Short-term obligations due within a year totaled HKD 32.2 billion, while its cash and bank reserves stood at HKD 21.8 billion. The company has made several attempts to divest assets, including the unsuccessful HKD 9 billion sale of the K11 Art Mall in Tsim Sha Tsui, a Grade-A office listing in Hangzhou valued at RMB 1 billion in March 2025, and the disposal of the Tsuen Wan Discovery Park Mall for HKD 4.02 billion. Aggregate asset sales for fiscal 2024 amounted to HKD 8 billion.
In February 2025, CEO Ellaline Huang reiterated that reducing debt remains the company's central focus. This strategy involves seven key measures, including the sale of development and non-core assets, unlocking land bank value, enhancing rental income, and suspending dividend distributions. The stated objective is to generate HKD 26 billion in proceeds over fiscal 2025 through these targeted initiatives








