UOL in talks for US$382m Hyatt Regency Kowloon stake
The Wee family's UOL is negotiating to acquire 50% stakes from Hong Kong's New World Development and Abu Dhabi Investment Authority in the Hyatt Regency Kowloon.
UOL pursues Hong Kong hotel asset
UOL, the Singapore-listed property developer backed by the billionaire Wee family, is reportedly in discussions to acquire the Hyatt Regency hotel located in Hong Kong's Kowloon district. The potential transaction values the hotel at approximately HK$3 billion, which converts to US$382 million.
UOL is negotiating with Hong Kong's New World Development and the Abu Dhabi Investment Authority (ADIA). The Singaporean firm aims to purchase the 50% stakes that each of these entities currently holds in the hotel. The Hyatt Regency Hong Kong, Tsim Sha Tsui, operates within a 64-floor skyscraper, according to information from Hyatt's website.
New World Development's debt reduction efforts
The potential sale aligns with New World Development's broader strategy to reduce its debt burden, divest assets, and enhance its liquidity. Reuters previously noted that New World Development stands as the most heavily indebted among its Hong Kong property developer peers, following several years of subdued property markets across mainland China and Hong Kong.
This Monday, the company confirmed it received approval from the Shanghai Stock Exchange to spin off and list its real estate investment trust [REIT]. This move is projected to generate net proceeds of 3.24 billion yuan, or US$483.9 million.
Wee family's expanding portfolio
UOL forms a part of the extensive business interests controlled by Singapore's Wee family. Their empire also includes a significant stake in United Overseas Bank (UOB), which is Singapore's third-largest financial institution. Forbes ranked the Wee family as the sixth wealthiest in Singapore earlier this month, estimating their combined net worth at US$12 billion.
The family comprises the heirs of the late banking and property magnate Wee Cho Yaw, who served as UOB's chairman emeritus. This acquisition would further diversify their property holdings across the region.
This proposed acquisition highlights the ongoing strategic adjustments within Hong Kong's property sector, particularly as developers like New World Development seek to optimise their balance sheets. The sale of a significant asset by a major player like New World could signal further consolidation or asset repositioning across the market.
For UOL, the deal represents an expansion of its regional hospitality portfolio, adding a prominent Hong Kong asset. Investors will observe if New World Development pursues additional asset sales to further its debt reduction goals in the coming quarters.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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