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New World Development and Adia refinance loan for hotel acquisitions: Hong Kong-based New World Development and the Abu Dhabi Investment Authority (Adia) have refinanced their joint syndicated loan to USD 1.21 bn for the acquisition of three luxury hotels in Hong Kong, adding approximately USD 33 mn in new funds, Mingtiandi reports. The facility, similar in size to a 2015 loan refinanced in 2018, funded the acquisitions of Renaissance Harbour View, Hyatt Regency Hong Kong, and Grand Hyatt Hong Kong.
REMEMBER- Hong Kong’s New World Development and Adia have been in talks since January to refinance the original loan. Adia bought a 50% stake in the three Hong Kong hotels in 2015 from New World Development, via a joint venture it formed with two New World subsidiaries for further acquisitions of Hong Kong hotels.
Details remain undisclosed: Both parties did not reveal the new maturity date of the refinanced loan. Originally set to mature this month, the loan should last between three to five years, New World told Mingtiandi. The Hong Kong-based company indicated that most of its US and Hong Kong USD loans follow this duration.
