BIG DEAL: ADIA Buys Stakes in Hong Kong Hotels
The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, is purchasing a 50% stake in three Hong Kong hotels from a group led by New World Development Co. Ltd in a HK$ 18.5 billion (US$ 2.4 billion) deal – one of Hong Kong’s largest real estate deals. ADIA is paying US$ 1.2 billion, including debt for its portion. New World Development, controlled by Hong Kong billionaire Cheng Yu-tung’s family, will receive HK$ 10.1 billion in cash for the sale. One of the developer’s units will hold 50% of the hotel group, while ADIA will own the rest – both interests to be held in an ownership joint venture. Leading the negotiations was Adrian Cheng, grandson of Cheng Yu-tung. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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