A $5.75 billion syndication loan is being arranged to finance a Sino Land-led consortium's development above the airport railway's Tai Kok Tsui station. Sino executive director Michael Cheng Chaun-kwan said the loan would be underwritten by two banks in Hong Kong, which he would not identify. The interest rate for the loan would be less than 200 basis points over the Hong Kong interbank offered rate, he said, adding that it would have a maturity of about four years. Arrangements are expected to be concluded next month. Mr Cheng said the loan would be used to finance the Tai Kok Tsui project's construction cost and half of the land premium payable to the Government. He estimated the total investment for the development at about $10 billion, including an average land premium of $1,600 a square foot, construction cost of about $1,000 a sq ft and interest expenses. The project covers two sites - A and C - with a total gross floor area of 3.17 million sq ft. Mr Cheng said the consortium had accepted the Government's proposed land premium of about $3.77 billion for the development at site C which could provide 2.26 million sq ft of floor area. The premium for site A, with a potential floor area of 913,880 sq ft, was $1.64 billion including $110 million for the Mass Transit Railway Corp.