A $207 million project to redevelop two dilapidated buildings in Shau Kei Wan was launched yesterday. The Housing Society plans to replace the buildings, between Sai Wan Ho Street and Sun Shing Street, with a high-rise residential building with a retail podium. The two buildings - one residential, one industrial - cover about 7,640 sq ft and are both close to 50 years old. The project affects 22 property interests including eight families and 11 factories. Owners will be compensated as though their properties were seven years old, as in Urban Renewal Authority projects. The society's property development director, Francis Law Hoo-yan, said $44.77 million of the development cost was for acquisition. The project is due for completion in 2007. Mr Law said the society started a three-day occupancy survey yesterday. It has set up a telephone hotline, 2839 7138, for queries. 'We have appointed the Salvation Army to deploy a social-worker team to provide counselling services and assistance to the affected owners and tenants,' he said. The Sai Wan Ho Street project is the last of seven projects the society has worked on with the Urban Renewal Authority under a memorandum of understanding signed in December 2002.