Sun Hung Kai Properties will invest up to $5 billion on the third phase of the development above the Kowloon-Canton Railway station in Ho Tung Lau, Sha Tin. Executive director Thomas Chan Kui-yuen said the extension would involve the construction of about 1,000 flats, or about 1.2 million sq ft of floor space. He said the company has yet to negotiate with the Government on the land premium, and details of the development plan were not ready. In Royal Ascot, the first phase of the development, more than 1,000 flats were sold early last year. The second phase, with 1,248 units, was expected to go on sale in the next two months, Mr Chan said. The project would be a major profit contributor for the developer this year. On the group's acquisition of a commercial-residential site in Hunghom with Henderson Land Development Co, Mr Chan yesterday said it was a joint effort because of the large amount investment required. He estimated the project would cost $7 billion, but said details of the development have yet to be worked out. The purchase was Sun Hung Kai's first at a public auction since March last year when it paid $1.61 billion for a residential site in Ngau Chi Wan.