Major overseas brands are key tenants of MegaBox, a revolutionary retail and entertainment complex opening soon in Kowloon Bay
	Due for completion in 2010, the International Commerce Centre will be Hong Kong's  tallest skyscraper and the world’s third tallest

The traditional industrial area of Kowloon is emerging as a hip new commercial hub as demand for Hong Kong's services sector increases.

International businesses are vying for space in the world-class office towers and cutting edge retail and entertainment precincts now transforming the landscape, while plush boutique hotels target an increasingly upmarket demand.

Kowloon's affordability and its easy transport connections – both to Hong Kong International Airport and the Chinese mainland border crossings – are driving the development. The redevelopment of the former Kai Tak airport site as the "heritage, green, sports and tourism hub of Hong Kong" is also encouraging private enterprise to match the government's vision to redefine the Kowloon precinct.

Developments include MegaBox, a revolutionary retail and entertainment complex being built by Kerry Properties; International Commerce Tower (ICC), which will be Hong Kong's tallest skyscraper and the third tallest in the world; and a new cultural, leisure and residential district blended in with a new cruise terminal at Kai Tak.

Firsts for MegaBox

MegaBox, opening this year in Enterprise Square Five, Kowloon Bay, introduces a unique retail mix including Hong Kong's first international size ice rink and IMAX theatre, an all-season theme park, the biggest collection of home improvement stores, the largest single storey "book city", sports city and electrical/electronic centre, plus over 30 gourmet restaurants offering a wide array of international cuisine.

Key MegaBox tenants include UK hardware giant B&Q, Australia's Spotlight home improvement store, and food establishments Meguro Sushi from Japan, and American steak and seafood chain Shooters 52. Above the shopping mall, one of two A Grade office towers has been leased to Hang Seng Bank, and half of the second tower to a leading multinational company.

According to Czarina Man, General Manager, Marketing, MegaBox Development Co Ltd, major international tenants have "realised the high potential of the whole of East Kowloon".

Tallest towers

Currently under construction in West Kowloon is the towering International Commerce Centre (ICC). Due for completion in 2010, ICC is at the core of the Kowloon Station Development, a HK$20 billion (US$2.6 billion) integrated development which will include two luxury residential towers called The Cullinan, named after the largest diamond in the world. At 270metres, The Cullinan will comprise the two tallest residential towers in Hong Kong, and offer sweeping harbour views. Also included will be a world-renowned W Hotel, a new Ritz-Carlton, luxury serviced apartments, 5.5 million square feet of A Grade office space, and a one million square-foot Elements retail mall.

The development will take on global importance and reinforce Hong Kong's status as an international city, according to the joint developers, MTR Corporation Ltd and Sun Hung Kai Properties. ICC also has excellent transport connections "which befits major international business centres like Manhattan in New York, Canary Wharf in London and Le Defense in Paris", the developers say.

Plush hotels

The Ritz-Carlton is taking the 15 floors of ICC for its new six-star hotel – an investment which Mark Lettenbichler, General Manager and regional Vice President of the Ritz-Carlton group, says underscores the group's confidence in Hong Kong's future.

Meanwhile, the Hong Kong Government is moving forward with its plans to redevelop the former Kai Tak airport site. The government is this year inviting tenders for a new cruise terminal to be located at Kai Tak, the first berth to be completed by 2012. Other proposals for the site include a multi-purpose stadium complex, a heliport, government office, a metro park and residential component.

According to CB Richard Ellis, Kowloon will function as the main engine of Hong Kong's future office expansion, accounting for 78 per cent of all new supply over the next four years. The realty firm says that comprehensive transport connections and large-scale urban development plans provide Kowloon with strong fundamentals to emerge as a commercial hub – particularly for those companies doing business in the Chinese mainland.

Well connected

Rick Santos, Managing Director, CB Richard Ellis Hong Kong, said Kowloon's easy cross-border connections would be a drawcard for international businesses.

"Apart from enjoying convenient local access provided by the MTR's Airport Express and Tung Chung lines, ICC will be at the juncture of KCRC's new Southern Link (to the New Territories), and the proposed Northern Link (which will eventually connect with the proposed Guangzhou-Shenzhen-Hong Kong Express Rail)," Mr Santos said.

"Road traffic-wise, ICC will be one of the terminal points for Shenzhen and is one of the terminal points for the Shenzhen-Hong Kong Western Corridor, and the Lok Ma Chau border crossing, allowing tenants to enjoy more efficient cross-border transportation."

Related links
MegaBox
Sun Hung Kai Properties
MTRC
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