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The state-backed Abu Dhabi Investment Authority (ADIA) and Hong Kong’s New World Development Co. are looking to refinance a HK$9.25 billion ($1.2 billion) syndicated loan related to the acquisition of three luxury hotels, according to a media report.
Citing people with knowledge of the matter, a Bloomberg report states the three Hong Kong-based hotels associated with the loan include the Renaissance Harbour View Hotel, the Hyatt Regency Hong Kong, Tsim Sha Tsui, and the Grand Hyatt Hong Kong.
Banks have been lined up for the potential refinancing in recent weeks, Bloomberg added, citing unnamed sources. It further reported that the new facility is likely similar in size to the 2015 loan, which was refinanced by New World and Abu Dhabi Investment Authority in 2018.
In 2015, the Abu Dhabi sovereign wealth fund agreed to buy a 50% stake in the three leading Hong Kong hotels, signing a deal with one of Hong Kong’s biggest property companies.
At the time, ADIA also agreed to form a joint venture company with two New World subsidiaries for further acquisitions in the Hong Kong hotels market.
(Writing by Bindu Rai, editing by Seban Scaria)
