TAI Cheung Holdings is studying the feasibility of a redevelopment plan for the Sheraton Hotel in Tsim Sha Tsui, in which the company has a 35 per cent interest. Speculation has been rife that the hotel will be torn down to make way for an office and commercial development. Tai Cheung chairman David Chan Pun said studies were under way to gauge the redevelopment potential of the property but nothing had been concluded yet. He said the management contract for the Sheraton would expire in 2004 but the landlord had the right to terminate the contract in 1996 or before. On the overall property market, Mr Chan said an increasing number of companies would have to relocate their offices from core districts to fringe areas. He said the territory's total office stock exceeded 70 million square feet, of which about 20 million to 30 million sq ft were of high quality. He expected the take-up of offices over the next few years would be higher than the average annual take-up in the past decade. Mr Chan said Tai Cheung currently had a land bank of about two million sq ft, of which more than 80 per cent was for office purposes in non-core business areas.