New World Development to surrender 11 SKIES mall to Hong Kong Airport, books HK$18.3B loss

Hong Kong-listed developer New World Development, controlled by the billionaire Cheng family, will surrender the 11 SKIES shopping mall project to the Hong Kong Airport on 1 Apr 2027. The termination triggered a net loss of HK$18.3 billion, including HK$14.7 billion in impairment losses and HK$2.3 b

Hong Kong property developer New World Development, controlled by the city's billionaire Cheng family, will surrender the 11 SKIES shopping mall project to the Hong Kong Airport on 1 Apr 2027, the company said in a filing on Wednesday. The firm will also provide works and services worth up to HK$1.1 billion for free.

The termination of the project resulted in a net loss of HK$18.3 billion for New World Development, comprising impairment losses of HK$14.7 billion and early termination charges of HK$2.3 billion. The charges pushed the company's net loss to HK$28.1 billion for the financial year ended June, widening from a net loss of HK$16.3 billion a year earlier.

Excluding non-cash losses, New World posted a core profit of HK$2.2 billion, its first in three years. Chief executive officer Echo Huang said the 11 SKIES charges resolved a major issue and that cash flow should improve significantly in the first half of fiscal 2026/27.

New World Development, the most heavily indebted among its local peers, has been cutting debt, disposing of assets and bolstering liquidity amid tight credit conditions and a weak property market. The company said on Wednesday that its cash crunch had eased further after expanding a loan facility by around HK$1 billion. In a separate filing, it said its loan facility with Deutsche Bank was increased to HK$4.9 billion from HK$3.95 billion committed in June.