Blackstone has proposed a $2.5 billion investment in a special-purpose vehicle tied to New World Development as part of a potential $4 billion recapitalization deal, according to Bloomberg. The proposal would see the Cheng family contribute between $1 billion and $1.5 billion, allowing both parties to reshape the Hong Kong-listed developer's shareholder structure while preserving the family's 45% control.

New World has struggled amid Hong Kong's prolonged property downturn, reporting a HK$3.7 billion loss and net debt of HK$122.7 billion ($15.7 billion) despite securing an $11 billion refinancing package last year. The Cheng family is currently evaluating alternative funding structures that would maintain their influence over the business, causing talks to slow.

If completed, the transaction would represent one of the largest recent foreign private equity commitments to Hong Kong real estate, potentially signaling renewed global investor confidence in the region's property sector. Blackstone's proposal demonstrates the firm's willingness to deploy significant capital into complex situations requiring balance sheet restructuring and long-term asset management expertise. The contemplated $4 billion structure underscores continued interest from global private equity investors in strategic opportunities across Asia's family-controlled corporates.