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NWD Reportedly Mulls Paying Exit Fee to Airport Authority to End 11 Skies LT Lease Obligations
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NEW WORLD DEV (00017.HK) is considering terminating its obligations in the 11 Skies mall project, including part of its long-term lease commitments to the Hong Kong Airport Authority, by paying an exit fee, Bloomberg reported, quoting people with the knowledge of the matter. The payment is unlikely to be made in cash, but may instead be settled in the form of land parcels or other assets. Both parties have yet to reach a consensus on the scale of the potential payment, although the amount previously committed by NEW WORLD DEV was substantial, sources divulged. According to UBS data, NEW WORLD DEV is expected to pay at least HKD1.8 billion in annual rent from 2028 to 2066, implying a total amount of approximately USD9 billion over the period. Both parties have discussed multiple payment options, including the Airport Authority taking over land owned by NEW WORLD DEV or acquiring an equity stake in the company, sources added. The Airport Authority is seeking new partners among major Hong Kong developers and global leisure and entertainment operators to run the mall after NEW WORLD DEV's potential exit. A spokesperson for NEW WORLD DEV declined to comment on the report, while a representative of the Airport Authority said it has been maintaining close communication with NEW WORLD DEV regarding the 11 Skies project, adding that the project will place greater emphasis on entertainment and catering elements in the future. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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