UPDATE 1: Tear Sheet (Part II): NWD’s China Property Sales Likely to Meet FY24 CNY15B Target, But Hong Kong May Fall Short; Improved Liquidity Allows NWD to Wait for Better Asset Valuations, Monetization; Conservative Asset Estimates Imply Recoveries in 70s for Notes/Perps

UPDATE 1: 8:30 p.m. ET 11/19/2023: Relevant Documents: NWD Tearsheet – Part 1 Excel Tear Sheet   Reorg Asia Highlights: New World Development Ltd, or NWD’s China property contracted sales remains robust and on track to meeting its CNY 15 billion target for fiscal 2024. However, its Hong Kong residential development pipeline appears weak and is likely to continue to face headwinds; Focusing on higher-tier cities and the Greater Bay Area, NWD holds significant land bank exposure in Guangzhou, Foshan, Shenyang and Beijing, reporting relatively strong contracted sales for certain projects in recent months; NWD management has said that it remained firmly committed to deleveraging over the next few years. With its healthy banking relationships, strong shareholder support and recently boosted liquidity from the NWS Holdings Ltd., or NWS, stake sale, the company will likely tide through challenging industry conditions while completing its major projects and waiting out for improved valuations to monetize its investment properties, or IPs; As of June 30, NWD utilized only HKD 50.4 billion of their HKD 167 billion completed investment properties as collateral for HKD 26 billion in secured debt, while maintaining HKD 100 billion in unsecured bank borrowings; and NWD has approached China residential[...]