PCCW Ltd, Hong Kong's biggest phone company, will buy all the shares it doesn't already own in its property development unit for HK$2.64 billion (US$339 million), amid expectations local real estate prices will surge this year.

PCCW, controlled by billionaire Richard Li, agreed to pay HK$2.85 apiece for 926 million shares, or 38.5 percent, of Pacific Century Premium Developments Ltd, the companies said in a statement to Hong Kong's stock exchange yesterday.