SHUN Tak Holdings has finally won complete approval from the occupants of Belcher Gardens, paving the way for its multi-billion redevelopment. However, the residents of Chatham Garden Flats in Kowloon, the other Hong Kong Civil Servants' Co-operative Building Society (CSCBS) site targeted for redevelopment by Shun Tak, have not been so obliging. On February 26, only 89 of the 140 occupiers of Chatham Garden Flats had executed new agreements allowing for its redevelopment. Strict rules governing the operations of the CSCBS require 100 per cent support from occupants before either of the buildings can be redeveloped. As this has not been forthcoming at Chatham Garden Flats, this project has been put temporarily on ice. Shun Tak has decided to proceed with the Belcher Gardens redevelopment irrespective of the Chatham Garden scheme. However, it is understood that Leung Sik-hung, CSCBS chairman, has written to Governor Chris Patten urging a waiver of 100 per cent occupants before dissolution of the society, a prerequisite for both redevelopments. At Belcher Gardens, home to 224 flats, Shun Tak proposed demolishing the existing buildings and replacing them with new high-rise residential blocks. The new buildings, standing on a 322,894 sq ft site, would house substantially more flats than before. At Chatham Garden Flats, if Shun Tak manages to acquire all the flats in the building, the site will be redeveloped into new residential and/or commercial buildings. Here Shun Tak proposes building a more modern rather than necessarily a bigger development. Should both redevelopments proceed, Shun Tak estimates the combined total cost would be between $6 billion and $7 billion, depending in particular on the amount of premium payable to the Government. This costing includes development and construction costs, plus compensation payments to CSCBS members. Shun Tak has proposed paying occupants of flats in Belcher Gardens cash sums ranging from $3 million to $4.2 million each, depending on the size of their flats. They will also be provided with a flat free of charge in the new development, ranging in size from 1,550 to 2,278 sq ft. In addition, members will be entitled to a flat for cash at $2,800 per square foot. Plus, the developer is required to make available car parking spaces to members in proportion to the number of flats provided to them at $320,000 per space. The total cost of such cash payments and the cash exchange entitlements to CSCBS members is estimated to come to $1.8 billion. Shun Tak's directors expect the funding of the redevelopment will be met partially out of existing financial resources and bank facilities, and partially out of financing arrangements to be put in place. Shun Tak recently said it was considering issuing US$200 million in convertible bonds to fund its CSCBS property redevelopments. Under the proposed Chatham Garden redevelopment agreement, the developer is required, if the agreement becomes unconditional, to compensate occupants $4 million a flat. However, the occupants of two flats would be paid $4.8 million. Here, Shun Tak estimated the total cost of cash payments would add up to $560 million.