Agreement over Hilton premiums finalised in near term Winnie Wu Negotiations between the Lands Department and Cheung Kong Holdings over land premiums for the redevelopment of the Hilton Hotel, a neighbouring car park and Beaconsfield House will be finalised soon.

The three properties will be demolished to make way for a large-scale office-retail complex once the land premium is granted.

The Government Information Service Department (GIS) will move to Murray Building in Central from Beaconsfield House, Government sources said.

Cheung Kong originally planned to redevelop the Hilton Hotel into a high-rise office-retail complex, yielding a gross floor area of about 600,000 square feet.

The developer wants to enlarge the redevelopment project by merging the hotel site, the neighbouring car park and Beaconsfield House.

Talks between the two parties have been taking place since May 1993 and the plans have recently been given the green light by the Executive Council.

One of the conditions being negotiated is that Cheung Kong will provide some office space in the new tower for Government use.

The developer is also required to build a park on the site as part of its compensation to the Government.

Market rumours said the developer will probably continue to expand the redevelopment project and is eyeing the present United States Consulate site in Central.

The office development, which is due for completion after 1997, will face strong competition from 2.4 million sqft of office space from the property developments above the new airport railway station in Central and the Tamar site, which will provide more than 500,000sqft of office space in 1998, analysts said.

By the end of this year, the Buildings Department will move to newly listed Kowloon Development's Pioneer Centre in Mongkok from 10 office floors in Murray Building, which is to be renovated.

The GIS will move to the vacated 3rd to 12th floors, after the renovation.

All rights reserved.