Sun Hung Kai Properties (SHKP) is to convert the tennis courts and a nine-storey office portion of the World Trade Centre in Causeway Bay into retail space to cash in on rising rentals in the sector.
The developer will convert the two indoor air-conditioned tennis courts and the office portion from floors five to 13. This will increase the retail space of the 38-storey block by 69per cent to 270,000 square feet, according to property agents familiar with the renovation plan.
Sun Hung Kai Real Estate Agency deputy leasing manager Fiona Chung Sau-lin confirmed the renovation would take place. She said the tennis court would be converted into retail space in 2010, while the office conversion would be completed by the end of 2008. She said the developer would release the details next month but declined to elaborate.
The tennis courts at the top of the shopping mall podium are being rented out to the neighbouring Excelsior Hotel. Agents said the developer planned to convert them into restaurants with outdoor seating areas and harbour views. The additional retail area would be rented out to operators of restaurants, fitness centres, spas and karaoke operators, who could afford higher rents than office tenants.
The developer plans to rename the shopping mall WTC and leasing for the extra retail space has begun. The conversion is scheduled for completion in 2008.
Property agents said office rentals at World Trade Centre were $20 to $25 a sq ft, while retail space went for $130 to $250 a sq ft. They said the developer would see strong growth in rental levels after the conversion.