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Source: Reuters

INTERVIEW-New World to invest $1 bln in China shopping malls

Published: 22 Mar 2010 02:26:02 PST

HONG KONG, March 22 - Hong Kong's New World Development <0017.HK> said the group plans to invest $1 billion to open shopping malls in China in the next 5-7 years, banking on strong consumption in the world's third-largest economy.

The group includes New World Development, New World China <0917.HK>, New World Department Store China <0825.HK> and NWS Holdings <0659.HK>, whose core business is in residential property, retail properties and hotels in greater China.

The group was trying to push a new-concept mall called K11 that combines art and shopping, executive director Adrian Cheng told Reuters an interview on Monday.

"The K11 concept shopping mall will have exponential growth in terms of rental income after it has been open for three years," said Cheng, 30, grandson of chairman and Hong Kong tycoon Cheng Yu-tung, who made his wealth from jewellery and property.

"We plan to open K11 malls in seven cities in China in the next 5-7 years and our plan is to invest around $1 billion for the development."

Cheng's comments came after the Hong Kong market closed on Monday. New World Development's shares were down 2.55 percent, lagging the broad Hang Seng index's <.HSI> 2.05 percent fall.

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