Why did Hong Kong’s 11 Skies fail and can the megaproject be rescued?
The roar of plane engines and the hustle and bustle at Hong Kong International Airport’s Terminal 2 present a stark contrast to the pin-drop silence at the adjacent 11 Skies commercial complex. A South China Morning Post reporter who travelled between the two places in early October found minimal footfall at the shopping centre, with the bright and airy environment of the airport terminal…
The 11 Skies commercial complex, a massive 3.8 million square foot project at Hong Kong International Airport, has failed. Originally developed by New World Development, the project consisted of 800 retail stores, 120 food and drink concepts, and office spaces. However, only one office tower currently houses businesses. The remaining space remains unused.
Negotiations to end the nearly 50-year contract between the Airport Authority and New World Development concluded in early October. The Airport Authority will take control of the project, reconfiguring the retail space into an entertainment hub and attracting new tenants and investors. New World Development, burdened by debt since 2023, relinquished control and paid a HK$2.3 billion break-up fee.
They are investing an additional HK$1.05 billion in works and services before transferring operations to the authority by next April.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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