FORTRESS JET LTD AND OTHERS v. TANG HOI YIP AND CHEUNG SAU CHAN PROPERTY LTD AND OTHERS

FORTRESS JET LTD AND OTHERS v. TANG HOI YIP AND CHEUNG SAU CHAN PROPERTY LTD AND OTHERS

Where a majority owner meets the statutory ownership threshold (here 80% by Gazette notice) and the Tribunal is satisfied on evidence that the buildings are aged, physically and functionally obsolete such that hypothetical repair cost is substantial and disproportionate to rebuilding cost, and that the majority has...

Source-derived case information.

Citation
FORTRESS JET LTD AND OTHERS v. TANG HOI YIP AND CHEUNG SAU CHAN PROPERTY LTD AND OTHERS
Parties
Applicant: 1st Applicant; Applicant: 2nd Applicant; Applicant: 3rd Applicant; Respondent (minority Owner G/f Shop): 1st Respondent (R1); Respondent (interest Assigned to R3): 2nd Respondent (R2); Respondent (minority Owner 1/f Unit): 3rd Respondent (R3)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
11 August 2017
Case Number
LDCS3000/2015
Procedural Posture
Application for Compulsory Sale Under Land (compulsory Sale for Redevelopment) Ordinance (cap 545) / Judgment (lands Tribunal)
Outcome
Application granted. Order for compulsory sale by auction made; reserve price fixed; trustees and trustee solicitors appointed; sale particulars approved; redevelopment completion condition imposed; costs order nisi against respondents.
Legal Topics
Compulsory Sale, Redevelopment, Existing Use Value (euv), Redevelopment Value (rdv), Tenantable Repair Standard, Mandatory Building Inspection, Reasonable Steps to Acquire Minority Interests, Expert Evidence and Hearsay
Source Language
en
Property Law Land Law Valuation Law Construction and Building Regulation Administrative Law Compulsory Sale Redevelopment Existing Use Value (euv) +5 more

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Parties

1st Applicant

Applicant

2nd Applicant

Applicant

3rd Applicant

Applicant

1st Respondent (R1)

Respondent (minority Owner G/f Shop)

2nd Respondent (R2)

Respondent (interest Assigned to R3)

3rd Respondent (R3)

Respondent (minority Owner 1/f Unit)

Procedural Posture

Application for Compulsory Sale Under Land (compulsory Sale for Redevelopment) Ordinance (cap 545) / Judgment (lands Tribunal)

Legal Issues

  1. 1 majority ownership threshold and application entitlement under s3 and specified Gazette notice lowering threshold to 80%
  2. 2 whether redevelopment is justified by age or state of repair under s4(2)(a)
  3. 3 appropriate standard for inspection and repair (tenantable condition v MBIS/MWIS)

Ratio Decidendi

Where a majority owner meets the statutory ownership threshold (here 80% by Gazette notice) and the Tribunal is satisfied on evidence that the buildings are aged, physically and functionally obsolete such that hypothetical repair cost is substantial and disproportionate to rebuilding cost, and that the majority has taken reasonable steps to acquire minority interests by making fair offers, the Tribunal will order compulsory sale for redevelopment; the correct assessment standard for redevelopment is the tenantable condition/obsolescence test (broader than MBIS safety standard).

Court Disposition

Application granted. Order for compulsory sale by auction made; reserve price fixed; trustees and trustee solicitors appointed; sale particulars approved; redevelopment completion condition imposed; costs order nisi against respondents.

Orders

  • Order for sale by public auction of all undivided shares in KIL 9580 and KIL 9251 (21 Ashley Road and 21A Ashley Road) pursuant to s5(1)(a) of Cap 545
  • Reserve price for the Lots set at HKD 352,512,000