An audit report last week on a grant of bonus land for the luxury Grand Promenade project at Sai Wan Ho was unfair and misleading, Henderson Land Development says. In a full-page advertisement published in seven newspapers today, it complains that the report, which said the government lost about $125 million from the grant, 'could cause a negative misconception among the public and undermine the company's credibility'. Developers estimated the company made a $3.23 billion windfall for a land premium of just $6 million after the grant helped it to double the planned number of flats. In its advertisement the developer says it did not know, when it tendered for the site, that the land was originally planned for 1,008 flats, and no such limit was set when the site was put up for tender in 2000. It says it is unfair to compare the 2,000 flats it built with the undisclosed figure. The company's response comes after the chief executive launched an inquiry into how the bonus 10,700 square metres came to be granted. The Audit Commission's report said former buildings chief Leung Chin-man used his discretion to make the grant in the face of strong objections from the Lands Department after the company demanded extra land to provide space for a public transport terminus and Marine Police facilities. In its ad, Henderson Land says the practice of building public facilities in exchange for bonus land was common. Henderson says it was natural for it to strive to get the best value for a project in the interests of its shareholders. It also says the company plan for the site varied between 500 and 3,000 flats but it finally chose for mid-way option. Henderson vice-chairman Colin Lam Ko-yin told the South China Morning Post that neither the tender document nor the land lease mentioned the maximum gross floor area, the number of units allowed or their size. Only the minimum residential gross floor of 80,000 square metres was spelled out. He said the Audit Commission report had unreasonably portrayed the developer as greedy and made the public think that something suspicious was going on. 'What the government has discussed internally has nothing to do with me; the Audit Commission should not blame me for building this number of units,' Mr Lam said. A Housing, Planning and Lands Bureau spokeswoman said it was inappropriate to comment on the issue now as the government had set up an independent committee of inquiry to look into the matter.