Chinachem Group chairman Nina Wang's ambition to develop the world's tallest building, the Nina Tower in Tsuen Wan, has been scrapped due to height restrictions.
A revised plan has been proposed, which may see the building reduced to the maximum permissible height of 324 metres from the originally proposed 468 m - a reduction of 144 m.
The Lands Department said, however, that it was still considering whether to grant an extension of land use rights to Chinachem, after it breached the building covenant by failing to complete the original development within a specified period.
Director of Lands Bob Pope said Chinachem's revised development plan was not being questioned.
The problem was that the developer had failed to complete construction within five years of the granting of the land rights, he said.
Mr Pope said the deadline for completing a project expired last month.