Wharf (Holdings) is negotiating to let space in a combined entertainment-shopping centre within its Ocean Terminal development in Tsim Sha Tsui.
The site is adjacent to its future 75-metre ferris wheel development. A 100,000 square feet retail space on the second floor was undergoing a HK$60 million facelift, Harriman Leasing director and general manager Doreen Lee said.
It would transform the space into a Japanese-style food, entertainment and shopping centre due to open in May.
Ms Lee said the centre would present a new image aimed at younger customers, and the shops were better designed to foster an open feeling.
Analysts said the revamped centre represented a curtain-raiser for Wharf's ambitious plan to turn the Ocean Terminal site into an entertainment and tourist attraction.
Wharf has won approval to build the ferris wheel at the waterfront tip of the terminal. It is expected to be ready in 2004.
Meanwhile, Ms Lee said office leasing in Tsim Sha Tsui remained active, especially for medium-sized deals, despite some people tending to hold a grim view of economic prospects.