Airport Authority Hong Kong (AAHK) today announced that an agreement (the Agreement) has been reached with New World Development Company Limited (NWD) in relation to the 11 SKIES development project (the Project). With the Agreement in place, AAHK is taking forward the Project full steam ahead, aiming to create a unique entertainment hub that contributes to the overall strategic development of SKYTOPIA with a new business model.
The Agreement puts an early end to the contractual arrangement with NWD for the Project and provides for the surrender of the related lease by Roxy Limited, a subsidiary wholly owned by NWD. As a result of the Agreement, the assets in connection with the Project, including three office towers and the entertainment complex, will be handed over to AAHK at no cost to AAHK. In addition to handing over the assets, NWD will provide cash and cash equivalents of over HK$3 billion to AAHK.
AAHK will take over the business development and management of the Project. The new model championed by AAHK for the Project envisages strong synergy between the Project and other components of SKYTOPIA, serving the strategic goal of SKYTOPIA to create a new landmark for Hong Kong and contribute to economic development as a growth engine.
Going forward the Project will focus on curating innovative entertainment for different ages, diverse dining options and all-round consumer experience, complementing other components of SKYTOPIA and forming an ecosystem that includes a 20,000 seat state-of-the-art arena for world-class performances at AsiaWorld-Expo, Hong Kong’s largest yacht bay providing some 500 berthing places, a water recreation area, art galleries and storage facilities, a promenade with leisure facilities, as well as an autonomous transport system that connects SKYTOPIA, the Hong Kong Port of the Hong Kong-Zhuhai-Macao Bridge and the Tung Chung Mass Transit Railway station.
The Project enjoys distinct geographical advantages. The assets are seamlessly connected to the airport, which supplies a major stream of international visitors and passengers in transit, and conveniently accessible to visitors from around the Greater Bay Area travelling on the Hong Kong-Zhuhai-Macao Bridge.
Fred Lam, Chairman of AAHK, said, “We are fully confident in the prospect of the Project. It will not be another traditional shopping complex. The scale of the Project is well-suited for large scale entertainment facilities and experience-driven offerings that would not be possible in other indoor venues in Hong Kong. It will be a unique entertainment hub that forms an integral part of SKYTOPIA, whose attraction is not only about stunning hardware. We believe it is the software – the contents, culture and holistic offering of an appealing environment that hold the key to success. SKYTOPIA represents a new airport development model, under which commercial development could in turn drive air traffic as visitors transit in Hong Kong to experience the entertainment offerings as part of their travel itineraries.”
“On the other hand, the entertainment hub may also potentially serve a platform for Mainland companies to market their products and services to an international audience, and vice versa, for international businesses to make inroad into the Mainland market by interfacing with visitors,” Mr Lam added.
Vivian Cheung, CEO of AAHK, said, “We would like to express our heartfelt appreciation for NWD’s contribution to the development of the Project since we started our partnership in 2018. Our Agreement strikes a balance between fulfilling contractual obligations and providing a solid foundation for AAHK to relaunch the Project. The assets we received are of high quality and leasable conditions. Building on the airport’s strong commercial track record and its experience curating team, AAHK has set up a new subsidiary with a dedicated, professional team for the Project, aiming to recruit top-notch entertainment operators and business partners globally, and open doors alongside major SKYTOPIA components in 2028/29.”
The termination of the sublease will be effective from 1 April 2027.
