The Lands Department is set to make the Mass Transit Railway Corp a fresh premium offer for the third phase property development at Kowloon Station. Deputy Director of Lands John Corrigall said time was getting short to reach a settlement as the conditions required the premium for the development to be paid by March 1. But Mr Corrigall refused to disclose whether the Government would cut the premium offer from the original $2.8 billion. He said the price paid for a West Kowloon residential site auctioned by the Government this month and transacted flat prices at a nearby project, The Waterfront, would be taken into account in the premium assessment. At this month's government auction, Cheung Kong (Holdings) beat four rivals for the 74,734 square foot residential site on the West Kowloon waterfront, paying $1.34 billion. Mr Corrigall said the department was also involved in discussions with the MTRC over the land premium for the additional 700,000 sq ft gross floor area to be developed at Tung Chung phase two development on Lantau Island and Area 55B in Tseung Kwan O. The Tung Chung phase two development is jointly developed by a consortium led by HKR International. The Area 55B project, located at the planned Tseung Kwan O Station, will have four residential towers of 912,078 sq ft above a 127,844 sq ft commercial podium. Director of Lands Bob Pope said the department had accepted a minimum purchase offer from a developer for a small residential site on Cheung Sha, Lantau Island. The 36,382 sq ft residential site, which was on the reserve list, would be put up for auction in February, he said. The site is one of 32 on the reserve list. A site is put up for sale at an auction or tender only after a developer makes an acceptable purchase offer and pays a deposit. Mr Pope confirmed the applicant had paid the deposit but declined to disclose the agreed purchase price.