A consortium led by Shun Tak Holdings has agreed to pay the Government a land premium of more than $5 billion, clearing the way for an $11 billion residential development to go ahead at west Mid-Levels.
Shun Tak yesterday said a consortium in which the company owned 51 per cent had accepted the premium of $5.29 billion offered by the Lands Department for the Belcher Gardens redevelopment site.
The company said the acceptance of the land premium was made 'after careful consideration and as supported by recent rising residential property selling trends'.
The $5.29 billion comprises a land premium of $373 million for the modification and an additional redevelopment premium of $4.917 billion for the 322,920 sq ft Belcher Gardens site.
Based on the premium, the average accommodation value of the project is estimated at $1,900 to $2,000 per square foot.
Land premiums charged by the Government are calculated on the projected enhanced value of the site once the redevelopment has been completed.