New World joins up with Shum Yip on innovation and tech property projects

Shenzhen Investment

16/05/2024 08:17

HONG KONG, May 16 (Reuters) - Hong Kong's New World
Development  0017.HK  said it has signed a strategic partnership
agreement with Chinese state-owned developer Yip Group to
jointly explore and develop innovation and technology real
estate projects in Hong Kong and Shenzhen.    
    The latest agreement, signed last Friday in Shenzhen,
followed New World's earlier partnerships with state-backed
China Resources Land  1109.HK  and state-owned China Merchants
Shekou Industrial Zone Holdings  001979.SZ  to co-build homes in
Hong Kong's "Northern Metropolis".
    The Hong Kong government unveiled plans for the Northern
Metropolis in 2021, aiming to provide homes for around 2.5
million people in a bid to ease a chronic housing shortage, and
create a new business district close to the border with
Shenzhen.
    In a statement on Thursday, New World, a major developer in
the financial city, said with Shum Yip Group they will together
explore and develop the innovation and technology zone in
Northern Metropolis and other initiatives.
    They also aim to develop landmark projects for industry
collaboration in the Greater Bay Area, which comprises 11
Chinese southern cities including Hong Kong and Macau, the
statement added.
    New World has one of the highest debt ratios in Hong Kong's
property sector, and its de-leveraging plan has been in the
spotlight in the past year.
    Shum Yip Group is the controlling shareholder of Shenzhen
Investment  0604.HK . 

 (Reporting by Clare Jim; Editing by Tomasz Janowski)
 ((clare.jim@thomsonreuters.com;))