Secretary for Development Carrie Lam says the Government is studying with King Yin Lei's owners the option of finding sites adjoining the historic building for development to make up for their loss of development rights due to the antiquity's preservation.

Mrs Lam today told lawmakers the Government has held three meetings with the owner's representatives to explore two easier options - to identify space with development potential within the existing site, or in adjoining sites to make up for the preservation of King Yin Lei.

"In light of the combined heritage value of the main building, garden and the respective layout of King Yin Lei, our initial view is the option of trying to identify space within the lot of the existing buildings and the garden for development would affect the integrity of preservation and hence do not seem to be a feasible option," she said.

"We are now studying with the owner's representatives the other option of identifying adjoining sites for development."

Comprehensive assessment

When making a decision on which option to adopt in preserving King Yin Lei the Government will assess their impact on planning, vista and private property rights.

"We will also consult the Antiquities Advisory Board and the Legislative Council, and carry out town planning processes. It is our goal to strike a proper and publicly acceptable balance between safeguarding the owner's legal private property rights and preserving historic buildings."

After the issues on property rights and on making up for the loss have been properly resolved the Government will arrange for the preservation and revitalisation of King Yin Lei.

"We will certainly steer the future preservation and revitalisation plans towards this direction. For instance, by participating in the Revitalising Historic Buildings Through Partnership Scheme we can breathe new life into King Yin Lei and open it up for public use in the spirit of adaptive reuse."