The AEON store at Kowloon City Plaza terminated its lease a year and a half early, paying a HK$53 million "severance fee," and disclosed that the reasons included not only the "trend of consumers heading north" but also the redevelopment of Kowloon City Plaza. However, Kowloon City Plaza stated on social media today (May 6) to clarify that there are currently no redevelopment plans, nor is there any confirmed redevelopment timeline, and stated that the related reports are purely false and misleading.
A statement from Kowloon City Plaza noted that, in accordance with the termination agreement, AEON must complete the handover process and return the premises to the landlord by May 15, 2026; the relevant arrangements are currently proceeding as scheduled. Kowloon City Plaza will also continue its normal operations and will continue to enhance the mall's facilities, tenant mix, and promotional activities to provide a better shopping and leisure experience for residents and customers.
The AEON Kowloon City store, located at 128 Carpenter Road, Kowloon City Plaza, opened in 2012. Spanning approximately 114,026 square feet across the first, second, and third floors, as well as part of the fourth floor, it pays a monthly rent of HK$4.8 million. The store has been closed since last December, for approximately five months. According to previous disclosures, Aeon must pay the landlord a settlement amount of approximately HK$52.99 million to terminate the lease early, including a non-refundable deposit of HK$8.01 million. The settlement is expected to be paid in three installments, with the first installment of approximately HK$14.12 million due by the end of this month.
A review of records shows that there have been repeated rumors of redevelopment at Kowloon City Plaza in recent years. It was reportedly approved in 2020 to be redeveloped into two 31-story mixed-use towers, but the plan later came to nothing.
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