The auction for the old building in Causeway Bay by New World has been approved for postponement until early March next year

New World (00017.HK) applied for compulsory sale of several old buildings on Percival Street 54 to 76, Lee Garden Road 5 to 27, and Happy Mansion in Causeway Bay in May 2022. The project was granted a compulsory sale order in August this year and was scheduled for compulsory sale in October. However, New World applied to the Lands Tribunal for a postponement of the compulsory sale, which was recently approved until early March next year, with the reserve price remaining at HKD 2.679 billion.

New World Group already holds over 80% ownership of the aforementioned properties, with the project site measuring approximately 19,831 square feet, and it is expected to have a plot ratio of 15 times for redevelopment into commercial buildings, allowing for a maximum buildable area of about 300,000 square feet.

It is reported that New World purchased a basket of retail and residential properties on Percival Street for HKD 1.28 billion from Ying Kee Tea House Group (08241.HK) and a senior investor in November 2021, acquiring over 20% ownership of the site, significantly increasing New World's ownership stake to meet the compulsory sale threshold