Swire Properties and Sun Hung Kai Properties (SHKP) have lost a court dispute over $349.65 million in stamp duty for a huge residential development site in Tseung Kwan O bought in 1997. The Court of Final Appeal yesterday ruled in favour of the government collector of stamp revenue, ending a four-year wrangle over the issue. The 539,730-square-foot waterfront site, next to Rennie's Mill in Tseung Kwan O, has been turned into a 15-tower private residential project, Ocean Shores, comprising 5,728 flats next to the Tiu Keng Leng MTR station. Yesterday's final court ruling overturned a decision by the Court of Appeal in March which ruled in favour of Arrowtown Assets for the relief of the $349.65 million stamp duty. Swire and SHKP each owns 49 per cent of Arrowtown and the remaining 2 per cent is owned by Shiu Wing, according to a Swire spokeswoman. The spokeswoman said Swire was disappointed by the ruling but respected the court's decision. She said the decision would not affect parent company Swire Pacific's profit and loss account as a write-off had already been made. Swire Pacific made a provision of $175 million for its share of the claimed stamp duty in 2001 - a year after the District Court ruled against it. The stamp duty dispute revolved around agreements involving a transfer of land, a sale of shares in a company to Swire Properties and SHKP, and an internal corporate reorganisation by Shiu Wing of four subsidiary companies involved in the land transaction.