(Bloomberg) -- New World Development Co. and Abu Dhabi’s sovereign wealth fund are planning to refinance a HK$9.25 billion ($1.2 billion) syndicated loan that’s related to the acquisition of three luxury hotels in Hong Kong, according to people with knowledge of the matter.

Banks have been tapped about the potential refinancing in recent weeks, said the people, asking not to be identified discussing private matters. The new facility is likely similar in size to the 2015 loan, which was refinanced by New World and Abu Dhabi Investment Authority in 2018. Renaissance Harbour View Hotel, Hyatt Regency Hong Kong, Tsim Sha Tsui, and Grand Hyatt Hong Kong are the loan’s underlying assets. 

The loan was extended by one year in 2023 and is now due in June, said two of the people. The borrowers have asked for three-year and five-year price quotes, according to one of the people. Details of the new loan are still under discussion.

Controlled by the $26 billion family empire of tycoon Henry Cheng, Hong Kong-based New World Development has been caught in the financial hub’s property-sector slump hitting residential homes to office spaces. New World shares fell to a 21-year low earlier this week amid concerns over its debt leverage, even as the family boosted its stake in the firm. The stock rose 4.2% Thursday.

New World didn’t immediately offer a comment. The Abu Dhabi fund didn’t immediately reply to a request for comment. 

Hong Kong’s ties with Middle Eastern investors have been growing in recent years. Another luxury hotel, Regal Hotels International Holdings, partnered with the Ministry of Investment of Saudi Arabia to build about 100 hotels around the world in a deal worth $5 billion. 

--With assistance from Pearl Liu.

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