New World Development
New World Development is one of the leading property developers based in Hong Kong. It has been listed on the Hong Kong stock exchange since 23 November 1972.[46] The initial public offering price was HK$2, issuing about 96.75 million of new shares.[47] The shares were initially traded in 3 out of the 4 exchanges of Hong Kong, namely the Hong Kong Stock Exchange, and Kam Ngan Stock Exchange,[48] the predecessors of the current Stock Exchange of Hong Kong.
As of 2018, New World Development is the parent company of listed companies NWS Holdings (, listed since 1997), New World Department Store China (, listed since 2007) and former listed companies New World Hotels (Holdings) (acquired in 1976, privatized in 1990), and New World China Land (listed in 1999, privatized in 2016). New World Development also owned former listed companies NW China Investment (listed in Ireland, privatized), New World Infrastructure (listed in 1995, privatized as New World TMT), and Renaissance Hotel Group (listed in 1995,[49] sold in 1997).
As of 1986, Chow Tai Fook Enterprises (CTFE) owned 466,927,948 shares in New World Development,[50] or about 43% of the issued share capital. As of 2018, CTFE still owned 44.41% shares of NWD, or 4,535,634,444 shares.
New World Development started its expansion in the 1970s with the acquisition of numerous properties and companies. The flagship property, New World Centre was built on the former site of Holt's Wharf, a former godown terminal that was owned by British companies Swire Group and Blue Funnel Line. In the first financial year after the initial public offering in November 1972, NWD had acquired 23 sites by paying HK$110 million in cash, and about 101 million new shares with a par value of HK$1 each.[51] The issue of new shares and the acquisitions of the holding companies of properties such as Kowloon Town Development Company Limited (not to be confused with Kowloon Development Company) were completed in the 1973–74 financial year.[52] The company also formed joint ventures with fellow developer Sun Hung Kai Properties (SHK) and non-profit organisation Tung Wah Group of Hospitals.[51] Kwok Tak-seng, patriarch of SHK, also served as a director of New World Development from the 1970s[51]
One of the initial rental holdings of NWD, Manning House, was in fact developed by Kin Kiu Enterprises in 1965. It was reported that Cheng Yu-tung, patriarch of Chow Tai Fook Jewellery, was one of the directors of Kin Kiu Enterprises at that time.[54] Both Kin Kiu Enterprises and Manning House were part of NWD's initial wholly owned subsidiaries and portfolio in 1973.[51] The 11th floor of Manning House also served as the headquarters of NWD.[51] According to the news report, the known directors of Kin Kiu Enterprises were Young Chi-wan[54] (notable for King Fook Jewellery and Hotel Miramar), as well as K.W. Yue[54] (, notable for Hotel Miramar), who also served as the chairman of the company.[54] As of 1973, Young and his son Albert Yeung Bing-ching were the directors of NWD, of which Young also served as one of the two vice-chairmen.[51]
New World Hotels (Holdings), formerly Kai Tak Land Investment, was incorporated in 1957 and was acquired by New World Development in October 1976. Kai Tak Land Investment's Kai Tak Commercial Building was added to NWD's rental portfolio. In October 1976, NWD also acquired privately owned Timely Enterprises.[55][56] Timely Enterprises was the company that owned the American International Tower (named after AIA Group), which was renamed (now New World Tower, tower 1) in 1980. It was the headquarters of New World Development[57] and Chow Tai Fook Enterprises. Construction companies, such as Hip Hing Construction,, and others were acquired by NWD circa 1973.[51]
In the past, NWD also owned New World Telecommunications, one of Hong Kong's major telecommunication companies. However, the sale of NWD to competitor HKBN in 2016 was described by Financial Times as part of "the process of succession planning [of the largest tycoon families of Hong Kong] as the founders reach retirement age or pass away.".[58] NWD also previously owned a minority stake in CSL New World Mobility. The stake was sold to the PCCW group in 2013. One-third of the share capital of Asia Television (ATV) was acquired in 1988,[59] but the stake was sold in the 1990s.
In the nearby enclave of Portuguese Macau, NWD [sic] once owned an 85% stake of Macao Water (also known as Sociedade de Abastecimento de Águas de Macau) via a joint venture with French company Suez Lyonnaise des Eaux as of 1987.[60] The stake of the intermediate parent company of Macao Water was transferred to listed subsidiary New World Infrastructure in 1997. The same French company had attempted to acquire Companhia de Electricidade de Macau (CEM)[60] from Sociedade de Turismo e Diversões de Macau in 1987, by forming a joint venture with a company owned by Cheng Yu-tung [sic].[61] The stake of the aforementioned water and electricity joint venture, Sino-French Holdings (Hong Kong), held by Chow Tai Fook Enterpriese (CTFE), was sold to the listed second-tier subsidiary of CTFE, New World Infrastructure, in 1997 for HK$1 billion[62] The stake in Sino-French Holdings (Hong Kong) was then transferred to another listed subsidiary NWS Holdings. The indirect stake in CEM was sold in 2014.
As of 2018, New World Development owned 16 hotels, but most of them have been closely associated with a hotel management unit, Rosewood Hotel Group, that was privately owned by Chow Tai Fook Enterprises.
On top of using its own resources, New World Development also partnered with parent company Chow Tai Fook group on a number of redevelopment projects, such as the acquisition of a 90% stake in Kut Cheong Mansion in North Point in the 2010s.[63] Chow Tai Fook Enterprises, via Sunbig Limited, sold a 40% stake in the aforementioned Kut Cheong Mansion to New World Development for HK$1.779 billion in January 2015.[64]
In 2010, the Chinese translation of a book, Land and the Ruling Class in Hong Kong, popularized the term to describe Hong Kong's real estate tycoon families. The combined Chow Tai Fook–New World Development group was one of the families described in the book.[65] The owners of the Chow Tai Fook–New World Development group, the Cheng Yu-tung family, has been sometimes considered one of the four big tycoon families of Hong Kong.[66][67]
NWS Transport Services
NWS Holdings, via NWS Transport Services, owned Citybus and New World First Bus, two of the franchised bus service providers in Hong Kong.[68] The two companies operate as a monopoly on the bus routes of Hong Kong Island, as well as some of the cross-harbour routes.
In the past, Citybus was owned by British company Stagecoach Group. In 2003 Chow Tai Fook Enterprises, via wholly owned subsidiary Delta Pearl Limited, acquired the bus company for HK$1,646 million, plus the refurbishment of Citybus' debt to third parties which amounted to HK$554 million.[69] In 2004, ownership was transferred to NWS Transport Services, a joint venture between listed portion (NWS Holdings) and the unlisted portion of Chow Tai Fook Enterprises. NWS Transport Services also owned New World First Bus and New World First Ferry. In December 2016, NWS Holdings acquired the remaining 50% share of NWS Transport Services from parent company Chow Tai Fook Enterprises, floating the bus businesses indirectly on the stock exchange.[70]
