The source said Cheung Kong, controlled by billionaire Li Ka-shing, plans to redevelop the 50,000-square-foot Broadcast Drive site into a luxury residential property with gross floor area of 105,000 sq ft. The site has a plot ratio of 2.1 times.

The project will require total investment of more than HK$800 million, or HK$7,700 per square foot, the source said.

Apartments in the area are selling at more than HK$10,000 psf.

The Hong Kong broadcaster confirmed earlier that it was close to agreeing to sell the site. Neither ATV nor Cheung Kong was available for comment Wednesday.

Cheung Kong may team up with conglomerate associate Hutchison Whampoa to develop the Kowloon Tong project, the source said.

The developer has been active in buying land in Kowloon Tong over the past decade after acquiring a nearby former Television Broadcasts headquarters site nine years ago, which was later redeveloped into Peninsula Heights.

Market sources said Cheung Kong is also eyeing Zuso Apartments, another luxury residential property in Kowloon Tong, estimated to be worth more than HK$2 billion.

The company plans to make an offer of nearly HK$6,000 psf for the 125,970 sq ft site involving 117 property owners on the existing building.

The property is expected to be redeveloped into a luxury project with potential gross floor area of 377,910 sq ft. Cheung Kong said earlier it raked in HK$300 million from flat sales at One Beacon Hill in Kowloon Tong in the first quarter.

The next batch of 10 homes in the project will be offered for sale in the second quarter, with an expected price tag of up to HK$14,000 psf.

First-quarter sales at the project comprised 15 apartments with prices starting at more than HK$10,000 psf.

Shares of Cheung Kong rose 0.34 percent Wednesday to close at HK$73.5 per share.

raymond.wang@singtaonewscorp.com