HONG Kong China, which is 71 per cent owned by Lippo Ltd, will sell the Ambassador Hotel to Stelux Holdings for $2 billion, $710 million more than it paid Kumagai Gumi (Hong Kong) four months ago. The disposal includes six residential units in Far East Mansion in Tsim Sha Tsui. Stelux said the acquisition was in line with its strategy to undertake major property investments in Hong Kong. It intends to demolish the existing hotel structure and develop a Grade A retail and office complex on the site. It is expected that a gross floor area of about 177,000 sq ft of prime commercial space can be constructed on the 11,800 sq ft site. Stelux estimated that the redevelopment costs, before interest, would be in the region of $250 million, and the project would be completed by the second half of 1996 and held for rental purposes. The acquisition and the redevelopment would be financed by internal resources and bank borrowings. Stelux said it was examining other methods for the long-term financing of the acquisition, but was not contemplating a rights issue. The group has paid an initial deposit of $400 million to Hong Kong China. A further $200 million is payable upon vacant possession of the property. and the balance of $1.4 billion by July 21.