Ryoden buys two lots to expand Mid-Levels project
Ryoden Development has bought two adjacent properties for its project in Hing Hon Road, west Mid-Levels, doubling the development size.
The original proposal was approved after the Privy Council last month ruled in favour of the company's high-rise project on an area once designated for low-rise only.
The ruling ended a lengthy dispute between the Government and Ryoden, which plans to develop a 25-storey residential block.
Ryoden can now proceed with the project without having to pay extra land premium.
Deputy chairman and managing director Raymond Hu Liang-ming said the company paid $109 million for the two lots adjoining the project site.
The owners raised their prices after the court ruling.
The acquisition increased the development site area to 6,550 sq ft, almost double the original size, Mr Hu said.
The enlarged development would cost about $220 million, he said.
The company bought the original site for about $60 million in 1992.
Mr Hu said the delay had increased cost estimates to $1,000 per square foot from $700 per square foot in 1993.
On the positive side, the company had made a capital gain from the site bought earlier, he said.
With the two extra lots, the project could provide a floor area of 52,406 sq ft, he said.
There would be 70 flats of 800 sq ft each, he said.
Mr Hu said it would take three months to demolish the existing properties before construction could start.
The project is scheduled to be completed by the end of next year.