New World Development's Massive White Elephant

11 Skies was billed as Hong Kong's largest "retailtainment"

New World Development had ambitions to have Hong Kong's largest "retailtainment" and tourism landmark located by the airport and near the Hong Kong-Zhuhai-Macau Bridge. 

Called 11 Skies, the 3.8 million sq ft complex would house more than 800 shops and 120 dining options, as well as Vquarium, the city's first-ever "virtual deep-ocean adventure experience", and "Paddington Play Adventures".

The massive retail and entertainment complex was situated in the Northern Metropolis by the border, and encourage mainlanders to come shop, dine and play here. But with the current trend of zero-spend tourists, it's likely they wouldn't come to this mall.

The complex is located in SkyCity, at the airport

As a result, it looks like 11 Skies won't be taking off anytime soon by the look of things.

There are reports the massive space is mostly empty, with only two restaurants open, hoardings are blank with no future tenants named, and escalators weren't turned on. The website only features the name with no information on it.

This does not bode well for 11 Skies, which cost HK$20 billion to build and only 40 percent of it leased, according to Bloomberg.

Meanwhile NWD is saddled with HK$210.9 billion (US$26.9 billion) in debt, and is struggling to repay loans. It needs to strike a deal with banks to refinance HK$87.5 billion of its loans by this month. So far it has secured 60 percent of that amount after pledging some of its most valuable assets like Victoria Dockside, basically its entire Tsim Sha Tsui complex, K11 Musea. 

NWD needs to get tenants in 11 Skies quickly and start paying rent because the Airport Authority will be expecting rent or up to 30 percent of the mall's gross annual revenue, whichever is higher, until 2066.

And if that wasn't enough bad news, NWD's stock value has fallen further. Back in 2019 it was priced at HK$52, and now it's only HK$4.53.