Hong Kong's No2 free-to-air broadcaster, Asia Television, has sold its Kowloon Tong headquarters to Cheung Kong (Holdings) for at least $600 million. The headquarters at 81 Broadcast Drive, with a site area of about 50,000 square feet, has a gross floor area of 105,000 sq ft. The $600 million sale price translates to $5,714 per square foot. 'We have signed the contract,' ATV chief executive Chan Wing-kee confirmed yesterday. The price tag was based on the existing plot ratio of 2.1, but the agreement called for a higher price if the government allowed Cheung Kong to increase the plot ratio, Mr Chan said. 'We will receive more money if the buyer manages to increase the permitted plot ratio through negotiation with the government in future,' he said. Mr Chan noted that Peninsula Heights, a luxury residential building adjacent to the ATV headquarters and also developed by Cheung Kong, had a plot ratio of 4.5. If Cheung Kong is able to raise the plot ratio to 4.5, the site's total permitted gross floor area will increase to 225,000 sq ft. In this case, the value of the property will increase to $1.28 billion. Mr Chan said ATV would transfer possession of the site to Cheung Kong two years after the completion of the transaction. The sale proceeds would be used to set up a bigger production base elsewhere, with Tai Po as one option, he said. 'The new production base will be double the size of the Kowloon Tong headquarters,' he said. Mr Chan said Cheung Kong planned to redevelop the Kowloon Tong headquarters into a luxury residential project. Allowing for the sale price, estimated government land premium and construction costs, surveyors expect the development cost to exceed $9,000 per square foot.