Blackstone is in advanced talks to become the largest shareholder in New World Development, in a transaction that would mark one of the most significant private equity interventions in Hong Kong’s property sector in years, according to Bloomberg.

The deal would allow Blackstone to restructure the embattled developer, while New World continues efforts to sell assets and shore up liquidity. The Cheng family, which currently owns about 45% of the company, would relinquish control under the proposed arrangement.

New World was pushed to the brink of default last year after years of debt-fuelled expansion collided with a deep property downturn. The company last year secured a record $11bn refinancing and reduced its debt burden by about $1.2bn through a bond swap.

By mid-2025, net debt had reached about 98% of shareholder equity, making New World one of Hong Kong’s most leveraged major developers. Its market capitalisation stood at about HK$28bn, or roughly $3.6bn, at the end of recent trading.

The talks underline Blackstone’s strategy of targeting value-rich assets in stressed markets, as well as growing private equity appetite for complex restructurings across Asia’s real estate sector.

New World and the Cheng family’s investment vehicle did not respond to requests for comment. Blackstone declined to comment.

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