After several years of negotiations with the Lands Department, Swire Properties is pleased to confirm that a revised premium offer of $799 million in respect of the site at Taikoo Valley, partly occupied by the Taikoo Primary School, is acceptable to both parties. Construction of the new primary school and the residential development will commence upon completion of the lease modification.

The project will comprise over 400 residential flats with a total gross floor area of 395,000 sq. ft. In addition Swire Properties will construct a new primary school with over 30 classrooms; and a community centre consisting of a nursery, a multi-purpose hall and Government offices. The total development cost is expected to be in order of $1.6 billion and the project is scheduled for completion by 2003.

Mr. Gordon Ongley, General Manager of Swire Properties said, "After many years of negotiation, Swire Properties is pleased to confirm that construction of the new primary school and the residential development can now proceed. We are confident that quality residential flats in popular areas such as this site at Island East, enjoying easy access to Tai Koo MTR station and convenient shopping at Cityplaza, will ensure the success of this development."

"Whilst we understand Government's policy regarding the funding of the GIC accommodation has been under review, we have been advised no change in policy is likely for some time given the wide ranging implications. The revised premium offer is acceptable and we have taken the decision to proceed with the development."

Swire Properties, a wholly-owned subsidiary of Swire Pacific Limited, is one of Hong Kong's leading property companies with extensive experience in the development of major commercial, retail and residential properties.

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