Kowloon Bay mall expected to generate $300m in first year
Kerry Properties is poised to reap more than $300 million in annual rental income from its MegaBox shopping centre in Kowloon Bay during its first year of operation, rising to $400 million in subsequent years.
The 1.1 million square foot mall, part of the Enterprise Square 5 development, has a construction cost of $2 billion. It is scheduled for completion in early 2007 and will be Kerry's first wholly owned shopping centre in Hong Kong.
MegaBox Development executive director Tom Tong Kwan-ki said about 40 per cent of the retail space had been committed by potential tenants. He is confident 50 per cent of the space will be snapped up by the end of the year.
The project, which would be the largest and tallest shopping centre in eastern Kowloon, had attracted a number of new overseas brands, Kerry Real Estate Agency marketing manager Kimmy Lau Pik-wai said.
A signing ceremony with one overseas tenant that committed to lease 100,000 sqft is scheduled for next Monday.