Taxpayers could face a HK$3 billion bill after the government formally declared historic Ho Tung Gardens a monument yesterday.
It means the owner, Ho Min-kwan - the granddaughter of late tycoon Sir Robert Hotung, who built the mansion in 1927 - could claim compensation after she was denied the opportunity to develop the site.
Surveyors have already estimated its redevelopment value at HK$3 billion, but she would have to go to court to claim the money.
The decision to declare the estate on The Peak a monument commits the government to coming to a deal with Ho. But efforts to agree a land swap have so far failed and the government could be forced to pay up. That would need the approval of Legco, and there is no guarantee lawmakers would support the move.
Announcing the decision after meeting antiquities advisers yesterday, Secretary for Development Carrie Lam Cheng Yuet-ngor said she hoped Ho would return to the negotiating table after rejecting a land exchange proposal in August. Lam has met Ho and her representatives six times on this issue.
'I have the statutory duty to preserve buildings that are of great historic and cultural significance, of which there are not that many in Hong Kong already,' Lam said.
'Although at this moment I am not sure if I can convince the owner to accept the land swap - and I am not certain what compensation level the court will award - I still feel I am obliged to make this decision.'