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Night Recap - October 2, 2026
4 hours ago
The Airport Authority Hong Kong has reached an agreement with developer New World Development to prematurely terminate their contract for the massive 11 Skies commercial project near the international airport.
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Following the exit, the Airport Authority plans to rebrand and reposition the development, integrating it into the broader Skytopia project to establish it as a world-class entertainment hub for Hong Kong.
The 11 Skies development boasts a massive total gross floor area of 3.8 million square feet.
Under the new operational model, half of the space will be dedicated to innovative entertainment facilities, which will feature a go-karting track and newly added pet-friendly amenities. The remaining half of the development will be designated for dining and retail.
In a change to the original plans, a fresh food market featuring direct air-freight deliveries—originally envisioned as an outdoor market similar to Japan's Tsukiji Market—will now be moved indoors within the complex.
On the retail front, the focus will shift away from traditional luxury brands toward experience-driven shopping. The entire complex is scheduled to open progressively between late 2028 and 2029, with officials expressing high confidence that most spaces will be leased out by then.
The Airport Authority hopes the revamped project will attract more transit passengers and serve travelers utilizing the upcoming "SKYTOPIA Yacht Bay," which is another key component under the Skytopia umbrella. Under the terms of the settlement, New World Development will continue to operate two of the entertainment facilities even after the contract termination.
To secure the early termination, New World Development will pay the Airport Authority HK$2.3 billion in cash alongside HK$1.05 billion in cash equivalents.
These funds will be allocated entirely to a newly established, dedicated subsidiary of the Airport Authority to cover the project's operational and business development needs.
Because the physical structure of the complex has already been built, authority officials are confident the funds will be sufficient to ensure long-term financial sustainability.
In explaining the decision to terminate the contract early rather than pursuing legal channels, representatives noted that New World Development had faced multiple unpredictable challenges since winning the project tender in 2018, including the global pandemic and subsequent management restructurings.
Resolving the lease through litigation would have been a time-consuming process. Considering Hong Kong’s long-term economic development, both parties ultimately agreed that an early, mutual termination was the most constructive path forward to expedite the launch of the landmark hub.
