Finance
Blackstone talks on $4 billion new world deal stall over control, Bloomberg news reports
Published by Global Banking & Finance Review®
Posted on March 4, 2026
3 min readLast updated: March 4, 2026
Quick Summary
Blackstone’s advanced negotiations to become the largest shareholder of New World Development have stalled, as the Cheng family resists ceding control. The Hong Kong developer continues to struggle with high debt and asset sales amid a prolonged property downturn.
Blackstone's $4 billion New World talks stall over control, Bloomberg News reports
By Kane Wu and Mihika Sharma
Stalled Negotiations Between Blackstone and New World Development
Background of the Talks
March 4 (Reuters) - Talks between Blackstone and New World Development have stalled, as the Cheng family resists giving up control of the Hong Kong property developer, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Proposed Investment Structure
The New York-based private equity firm proposed investing about $2.5 billion in a special-purpose vehicle that would make it New World's largest shareholder, while the Cheng family would contribute $1 billion to $1.5 billion, the report said.
Family's Search for Alternatives
Discussions have slowed as the family explores alternatives that would bring in capital without surrendering control, the report added.
Other Interested Parties and Process Details
Engagement with Financial Institutions
The Cheng family has been in discussions with a handful of financial institutions to sell an equity stake in New World and Blackstone was the most advanced party in the process, a person with direct knowledge of the matter told Reuters.
Control Concerns
Any investor would have to align their interests with the family and a change of control would be unlikely, said the person and a second source familiar with the situation.
Confidentiality of Discussions
Both declined to be identified as the discussions were private.
Official Responses
Blackstone and New World Development did not immediately respond to Reuters requests for comment.
The Cheng Family's Position and Company Overview
Family Ownership and Influence
The Cheng family is one of Hong Kong's wealthiest dynasties. Through their private conglomerate, Chow Tai Fook Enterprises, the family owns 45.24% of the developer, according to LSEG data.
The Cheng family's grip on New World has long been central to the group's strategy.
Financial Challenges and Strategic Moves
The company, the most heavily indebted developer among its peers, has been seeking to refinance its debt and bolster liquidity as Hong Kong's property sector remains under strain from tighter credit conditions and a weak office market.
The family, without any debt coming due imminently, is seeking to bring in an equity investor to ease debt pressure, the first source said.
Asset Sales and Market Performance
New World has meanwhile been in negotiations with investors to sell various assets including the K11 Art Mall in Kowloon, but it has yet to find a buyer.
Shares of the company, with a market value of about $3 billion as of Wednesday, are up about 26% so far this year.
Reporting Credits
(Reporting by Kane Wu in Hong Kong and Mihika Sharma in Bengaluru; Editing by Sumana Nandy, Mrigank Dhaniwala and Thomas Derpinghaus)
Key Takeaways
- •Blackstone was in advanced talks to become New World’s single largest shareholder, which would require the Cheng family to relinquish control (news.bloomberglaw.com).
- •Discussions faltered due to the Cheng family’s reluctance to give up governance control, despite New World’s urgent liquidity needs amid high debt levels (businesstimes.com.sg).
- •New World remains heavily leveraged, having undertaken record refinancing and asset disposal efforts, but still faces debt challenges and internal family resistance (businesstimes.com.sg)
References
Frequently Asked Questions about Blackstone talks on $4 billion New World Deal stall over control, Bloomberg News reports
1Why have Blackstone and New World Development's deal talks stalled?
Talks have stalled because the Cheng family, owners of New World Development, are resisting giving up control of the company.
2Who reported on the stalled $4 billion Blackstone deal?
Bloomberg News reported on the stalled deal, citing people familiar with the matter.
3What is the value of the deal between Blackstone and New World Development?
The deal is reportedly valued at $4 billion.
4Where is New World Development based?
New World Development is a property developer based in Hong Kong.
