SHUN Tak Holdings has confirmed that it was offering a 29 per cent stake in its giant Belcher Gardens redevelopment in Mid-Levels to Sun Hung Kai Properties.
The pair has set up a joint-venture company, Ranex Investments, to carry out the redevelopment of the site, formerly home to the Hong Kong Civil Servants' Co-operative Building Society.
The joint venture will redevelop Chatham Gardens in Kowloon, once it has finalised negotiations with the Civil Servants' Co-operative over compensation for vacating that site also.
On the Belcher Gardens site, Ranex intends to build up to 10 residential towers of between 38 storeys and 45 storeys. Shun Tak estimates the total cost of the proposed redevelopment will be between $6 billion and $7 billion.
The amount will depend on how much land premium Ranex will have to pay the Government for redevelopment rights and how many of the displaced Belcher Garden co-operative members opt for cash compensation instead of re-housing.
Shun Tak said it expected to foot its share of the costs out of existing financial resources and bank facilities, and special financing arrangements.