Swire Properties will put the lower 13 floors of its Island Place Tower office development in North Point up for sale at between $4,600 and $5,600 per square foot, company officials say. Michael Moir, director with Swire Properties, said while there had been a demand to buy the upper floors of the building, 'we prefer to sell the bottom floors first, which will appeal more to end-users and investors'. Island Place Tower, at 510 King's Road, is part of Swire and China Motor Bus' joint redevelopment of an old bus depot. The development also includes three residential towers - already on sale - and a retail section, for lease only. With a floor plate of about 20,000 sq ft, Swire officials said the 13 floors could generate sales revenue of about $1.3 billion. The tower has 25 floors of offices, providing about 500,000 sq ft of accommodation. Mr Moir said they decided to sell the office complex 'because when the joint-venture company was set up, the intention was to sell everything but the retail portion'. Swire officials said they were confident there would be demand for office space in North Point. An estimated three million sq ft of new space is projected for the area in the next three years. 'Although North Point does not have a reputation as a business district, if you look at what is happening in [the area], there is a whole range of developments taking place.' Mr Moir said. New projects are being undertaken by Cheung Kong, Swire and Lai Sun Development's chairman Lim Por-yen. They are scheduled for completion before the turn of the century. 'This is going to become an office district in its own right,' Mr Moir said. 'What we are offering is the chance for people to buy their own office space in what will be an up-and-coming district.' In setting prices, Mr Moir said Swire had taken present yields into consideration. Selling prices in Island Place Tower would provide buyers with yields of about 6 to 6.5 per cent. Mr Moir said the figure was higher than some yields in prime buildings in town, which were running at about 4.5 per cent. It was possible for people to purchase whole floors or half floors in the new tower block, he said. 'We do expect some people to buy whole floors but we must be realistic,' he said. Some floors would be divided into 12 sections.