Chinachem Group chairman Nina Wang will build two office blocks on a site in Tsuen Wan originally earmarked for a 108-storey tower project, which was dropped because of height restrictions. Sources said one tower would be 98 storeys while the other would be much lower. The proposal would leave the project at its maximum permissible height of 324 metres. The company had proposed in March 1994 to build Nina Tower, which at 468 metres would have made it the tallest building in the world then. The sources said the latest plan was still at a preliminary stage and could change. They said there would be a detailed study, which might reduce the height of the taller building. Chinachem has secured a one-year extension for the right to develop the 210,000-square-foot site in Yeung Uk Road. Director of Lands Bob Pope said the company had paid a penalty of 2 per cent of the site's market value to extend the deadline to December. He said the developer could keep the site as long as construction work was in progress. Chinachem would have to pay additional penalty charges to maintain the site until the project was completed, he said. A 2 per cent premium was applicable for the first year, rising to 4 per cent in the second and 8 per cent in the third. Chinachem bought the site in 1991 but failed to complete its development by the end of last year. This was in breach of the conditions, giving the Government the right to reclaim the site. After lengthy negotiations with the Government, the issue was settled when the company agreed to pay an additional premium for the site. Surveyors have estimated the site's value at $8 billion to $8.7 billion, given the 2.1 million to 2.3 million square feet of floor area likely to be constructed. Based on that valuation, Chinachem would have to pay an additional premium of about $160 million to $174 million for the first year.