Henderson Land Development has acquired Paliburg Holdings' 8 per cent interest in a Fanling residential development for between $200 million and $300 million, Henderson chairman Lee Shau-kee said. He said Henderson had no plans to take a stake in Paliburg or buy other assets from the debt-ridden developer. After his group's annual general meeting yesterday, Mr Lee said the acquisition had been concluded last week and had raised Henderson's interest in the Belair Monte development to 16 per cent. 'It is a very good price,' Mr Lee said. 'This deal was easier and closed very fast . . . maybe Paliburg wanted to raise cash as soon as possible.' Paliburg, part of Lo Yuk-sui's cash-strapped Century City group, has been under pressure from creditors to off-load assets in recent weeks to reduce debts. Deals for other Paliburg assets such as hotels would be more complicated and would need more time for assessment, Mr Lee said. Henderson and Paliburg were among 12 developers who bought the Fanling site for development for $2.04 billion at a government auction in May 1994. Mr Lee said the project, comprising 1,680 flats, would be released for sale within the next two months. He said Henderson was in a strong financial position and had no immediate need to take out loans. Vice-chairman Colin Lam Ko-yin said Henderson's gearing ratio was 10 per cent and there was room to reduce it further in the short term. Meanwhile, Mr Lee said the group would provide financing of up to $8 billion to the Land Development Corp (LDC) for an urban renewal development in Tsuen Wan. Henderson had lent $2 billion so far and expected the LDC would need more capital when it started construction. The project would comprise 1.12 million square feet of residential space and 287,775 sq ft of retail space. Mr Lee said Henderson would earn interest from the lending but terms were not disclosed. It also had an option to purchase completed units in the development if the price was right. On Henderson's property sales, Mr Lee said the company would book $13 billion revenue from the disposal of 6,000 flats for the financial year to June 30 next year. The majority of the revenue had been secured as nearly 80 per cent of the units had been pre-sold, he said. Another $16 billion would be booked in the following year from the sale of 7,000 units, of which half had been sold through pre-sales, he said. The sites of Henderson's latest developments, including La Cite Noble and Metro City phase two in Tseung Kwan O, were acquired 20 years ago at a low cost of about $200 to $300 per square foot through land exchange entitlements, he said. The overall development cost for its Tseung Kwan O projects was just $1,100 per square foot against current prices of $3,000 per square foot to $4,000 per square foot for flats in the area. Henderson would release at least 3,000 units for pre-sale over the next three to four months, Mr Lee said.