Blackstone has proposed injecting approximately $2.5bn into a special-purpose vehicle tied to New World Development as part of a broader $4bn transaction under discussion, according to a report by Bloomberg.

Under the proposal, the Cheng family would contribute between $1bn and $1.5bn, allowing both parties to recapitalise the Hong Kong-listed developer while reshaping its shareholder structure.

Talks have slowed as the family evaluates alternative funding structures that would preserve influence over the business. The Cheng family currently controls roughly 45% of the company.

New World has faced sustained pressure following a prolonged property downturn in Hong Kong and mainland China. Although it secured an $11bn refinancing package last year, the developer recently reported a HK$3.7bn loss and net debt of HK$122.7bn, equivalent to approximately $15.7bn.

A completed transaction would represent one of the largest recent foreign private equity commitments to Hong Kong real estate and could signal renewed global investor engagement in the region’s property sector.

Blackstone’s proposal highlights the firm’s willingness to deploy significant capital into complex situations where balance sheet restructuring and long-term asset management expertise can unlock value.

While discussions remain ongoing and no agreement has been reached, the contemplated $4bn structure underscores continued interest from global private equity investors in strategic opportunities across Asia’s family-controlled corporates.

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