Key Takeaways:
New World Development (00017.HK) moved to clarify its position on the flagship 11 Skies project, stating it has not entered into any agreement with the Hong Kong Airport Authority regarding the development's contractual arrangements after media reports suggested a change of control.
A spokesperson for the Airport Authority said it is "maintaining close communication with the developer NEW WORLD DEV regarding the '11 SKIES' project," adding that the project's positioning will align with the overall development of the larger SKYTOPIA Airport City to generate synergies.
The developer's statement directly addressed market speculation, confirming that talks with the Airport Authority to review or explore changes to the project's contracts are ongoing but have not led to an agreement. The clarification follows a South China Morning Post report that the Airport Authority had taken over the 2.66 million-square-foot retail and dining portion of the development. New World also said its financing arrangements are being managed in the ordinary course of business and that no material developments have occurred regarding potential investments in the company since a January announcement.
The uncertainty surrounds a key asset for the HK$23.86 billion developer, as 11 Skies is a major component of the Airport Authority’s SKYTOPIA vision. While NWD's statement calms immediate speculation of a full takeover, the confirmation of high-level negotiations introduces uncertainty over the final ownership structure and future profitability of the project, which is slated for a phased opening in 2028.
This article is for informational purposes only and does not constitute investment advice.
