Abu Dhabi Investment Authority (ADIA) will buy a 50% share of three Hong Kong hotels from New World Development Co. for HK$18.5 billion (US$2.4 billion). Under the deal, New World will sell its interests in the Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency Hong Kong hotel to a joint venture to be formed by New World and ADIA.
New World said it expects a gain of HK$15.5 billion (US$2 billion) from the sale of its majority interest, which will be used for development projects, expanding its inventory of land and working capital.
J.P. Morgan & Co. served as the financial advisor to New World.