New World Development Company Limited ('New World Group' or 'the Group', Hong Kong stock code: 17) announced today that the Group will invest over HKD10 billion to develop a large scale cultural retail destination in Prince Bay of Shenzhen.
New World Group has been actively developing the Greater Bay Area (GBA) with a key focus on Shenzhen, the 'key driving force for the Bay Area'. Situated next to the brand-new cruise terminal in Shekou with a GFA of 3.9 million square feet, the Prince Bay project will become the largest harbourfront cultural-retail destination in Shenzhen. Modeling on Victoria Dockside, its flagship project in Hong Kong, the Group will bring top-notch creative design and green initiatives into the project, turning it into the 'Victoria Dockside 2.0' that brings in the brand new circular economy model and cultural-retail experience. The Prince Bay project, which is scheduled for completion by stages starting from 2024, is poised to become a new and magnificent landmark on the Shenzhen harbourfront.
Located in the heart of GBA, the New World Group'sPrince Bay Project is in close proximity to Nanshan District that features a cluster of strategic and high-tech industrial base, tertiary institutions, tourist attractions and logistics facilities. Such a prime location offers the Prince Bay project numerous development potential. The one-hour living circle covers a population of 32 million in Shenzhen, Dongguan, Zhuhai, Huizhou and Zhongshan, etc. The project is easily accessible by sea, land and air. It is right above the Prince Bay subway station and is seamlessly connected to the nearby Prince Bay cruise terminal with an estimated annual passenger flow of six million. The Bao'an International Airport is only half an hour away. The huge population and passenger flow within this living circle will bring unlimited business opportunities to Prince Bay.
With the rich resources of Dananshan and Xiaonanshan, the stunning harbour view and the 1.7-kilometre harbourfront promenade, the Prince Bay project is well positioned to be an international community with a total construction area of 1.7 million square metres, offering a fully functional city with immense development potential.
The Prince Bay project's signature cultural lifestyle theme will be showcased by a K11 Art Mall, a family and education destination Discovery Park and a multi-purpose art and cultural space where visitors can immerse into the artistic and cultural ambience. In this cultural entertainment district, there will be a well-crafted cultural and commercial promenade, a five-star hotel, a 380-metre high office tower, as well as an international hospital and educational facilities, forming a full-service living circle.
In addition to the strategic location in the GBA, the project also enjoys unique advantages in transportation, landscape, design, art and commerce. It is estimated to attract more than 500 high-end tenants. The project will also bring in tenants that are focused on 'sustainability and wellness', a post-pandemic lifestyle. It is expected to draw lucrative rental returns to the Group annually, and become an industry leader in Nanshan District in terms of rental performance.
To cater for the next generation's pursuit of a green and healthy life after the pandemic, the project will introduce considerable green and sustainable elements, building GBA's 'First Circular Economy Hub'. In line with Shenzhen's zero waste city pilot scheme, waste reduction measures will be implemented in various aspects ranging from architectural design, F&B to fashion, that create a new retail experience for customers that are environmentally friendly, healthy and safe.
With such competitive edge, the Shenzhen Prince Bay project's residential units are sought after, which is evidenced by the overwhelming sales performance of the BAYHOUSE with two towers of fully furnished serviced apartments of 240 to 398 square metres being sold at an average selling price of RMB 20 million per unit. In addition, the sales of two Grade A office towers exceeded HKD10 billion, reflecting positive market responses.
As the most active Hong Kong developer in urban renewal, the Group will launch six old towns' renovation projects in the near future, including Wenjindu Port Economic Zone in Luohu District, Shenzhen; Xili in Nanshan District, Shenzhen; Shancun in Liwan District, Guangzhou; Nanji Village in Haizhu District, Guangzhou; Tagang Village in Zengcheng District, Guangzhou and Xiajie Village, Licheng Street, Zengcheng District, Guangzhou. With a GFA of 1.8 million square metres, these projects are expected to be included in the Group's land bank in 2022. The Group will also infuse heritage and innovative concepts in these projects to enhance its competitive advantages. New World Group is also developing a number of high-quality international projects in other GBA cities, including, the Hanxi Changlong project at a major transport interchange in Panyu that comprises a GFA of over 500,000 square metres. The project will be developed into a transit-oriented destination with Discovery Park, Grade A office towers and residential units.
The New World Group currently has a land bank of approximately 6.48 million square metres of GFA in mainland China. Among which, major projects comprise a GFA of approximately 5.71 million square metres with half of it located in GBA. In the past four years, New World successfully won projects with a GFA of approximately 1.5 million square metres through various means. In general, the overall gross profit margin of the development in GBA is higher than that of other projects. In the last financial year, the gross profit margin of GBA projects reached 70%. Upon completion, the Prince Bay project and other GBA projects are expected to contribute considerable revenue to the Group
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