New World Development Returned Control of Struggling 11 Skies to Airport Authority

New World Development has returned control of the struggling 11 Skies commercial project to the Airport Authority, prompting scrutiny of the megaproject’s legal and economic ramifications.

A stark contrast beside the airport

The project sits beside Hong Kong International Airport’s Terminal 2, where the roar of plane engines and the hustle and bustle of travellers contrast sharply with the pin-drop silence at 11 Skies.

A South China Morning Post reporter who travelled between the two locations in early October found minimal footfall at the shopping centre.

Inside, the bright and airy environment of the airport terminal gave way to dim, stuffy and boarded-up corridors.

The complex also had poor air conditioning while outdoor heat was simmering, adding to the contrast between the busy terminal and the struggling development.

What was planned for 11 Skies?

11 Skies occupies a gross floor area of 3.8 million square feet, making it a mammoth project at the airport.

Seventy per cent of the space was originally earmarked for a mall containing 800 stores and 120 food and drink concepts.

The remaining space was to be divided equally between experiential entertainment facilities and grade A office spaces.

That planned mix was intended to make 11 Skies more than a conventional shopping centre, combining retail, food and drink, entertainment and offices within the airport project.

Why the project is under scrutiny

The current condition is far removed from that original scale, according to the source material.

Only one of the project’s three office towers currently houses some companies running businesses at the airport.

The limited use of the office space, along with minimal footfall and boarded-up corridors, illustrates the gap between the project’s original ambition and its present state.

With control now returning to the Airport Authority, experts are examining whether the project can be rescued and what the handover means legally and economically.

Source: South China Morning Post