Cutting New World ties over 11 Skies averts ‘lose-lose’ deal: Airport Authority
The Airport Authority has averted a “lose-lose situation” by terminating a nearly 50-year contract with Hong Kong developer New World Development for the 11 Skies commercial project, with most facilities set to open in 2028, according to the organisation’s directors. The authority’s executive director for finance, Julian Lee Pui-hang, said on Friday that it could no longer work with a debt-ridden…
The Airport Authority has ended a lengthy agreement with Hong Kong developer New World Development for the 11 Skies project, averting a "lose-lose" situation, according to the organization's directors. The 11 Skies project was set to open its most significant facilities in 2028, with the termination occurring earlier than initially planned.
New World Development, facing financial difficulties, returned the infrastructure and agreed to pay a HK$2.3 billion break-up fee, as well as HK$1.05 billion for remaining works and services. The Cheng family's option to purchase 750 million shares in New World, worth HK$1, will enable the authority to take control of the company.
The termination impacts the authority's entitlement to receive 20% of the guaranteed rent or revenue rent from 2027 to 2066. The 11 Skies project, initially a HK$20 billion development, will now transition into an entertainment hub, with key components of Skytopia, a HK$100 billion landmark, to be completed by 2028.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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