CK Asset (HKG:1113) plans to demolish and rebuild three buildings in its Hong Kong starter homes project after substandard reinforcement steel was found, the South China Morning Post reported Thursday.

The developer considers rebuilding the quickest and most cost-effective solution to address concerns raised by the Buildings Department, which has approved the demolition, the report said.

Rectification work on three other buildings is ongoing, and China Railway Engineering (Hong Kong) has been appointed as the project's new contractor, according to the report.

Shares were last up nearly 1% ahead of midday on Friday.

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