New World in talks with Airport Authority on 11 Skies rent relief, Bloomberg reports

Debt-laden Hong Kong builder New World Development (0017) is in talks with the Airport Authority Hong Kong to seek rent relief for its 11 Skies commercial complex near the airport, Bloomberg reported.

The developer is pushing to waive at least part of the guaranteed rent, though it would continue to share a portion of the mall and office tower’s annual revenue with AAHK, people familiar with the matter told Bloomberg.

Discussions have also included possible returns for AAHK if it makes concessions, with one option being a stake in the project, according to the report.

In a statement, AAHK said it has maintained close communication with New World over the 11 Skies project and remains confident about the development prospects of its Airport City initiative.

STAFF REPORTER