Crocodile Garments has agreed to pay a land premium of $274.07 million to develop its flagship industrial site in Kwun Tong into a $1 billion commercial building with a shopping centre.
The company planned to demolish the 10-storey factory building on 79 Hoi Yuen Road to build a commercial tower with a gross floor area of 240,000 square feet, Crocodile chief financial officer Connie Chan Lai-ping said.
Excluding the premium, the development cost is expected to be $1,100 per square foot.
Ms Chan said the garment company planned to invest $264 million in construction costs on the project, which is scheduled for completion within the next three years.
The firm, of which Lai Sun Garment (International) holds nearly 55 per cent of the issued share capital, said it had paid 10 per cent of the land premium as deposit.
Land premium costs would be covered by internal resources and other credit facilities, it said.
