DAY BRIGHT DEVELOPMENT LTD AND OTHERS v. U ION FAI AND OTHERS

DAY BRIGHT DEVELOPMENT LTD AND OTHERS v. U ION FAI AND OTHERS

Applicants satisfied the statutory ownership threshold (applicable threshold reduced to 80% by s.3(5) notice), the valuation of the missing unit was fair and reasonable, experts established the Building is over 53 years old and in a state beyond reasonable economic repair so redevelopment is justified, and the applicants took reasonable steps to acquire outstanding shares; accordingly Tribunal ordered compulsory sale by public auction and fixed the reserve price at HK$164,000,000 (trustee appointed and sale particulars approved).

Citation
DAY BRIGHT DEVELOPMENT LTD AND OTHERS v. U ION FAI AND OTHERS
Parties
Applicant: 1st applicant; Applicant: 2nd applicant; Applicant: 3rd applicant; Applicant: 4th applicant; Respondent: 1st respondent; Respondent: 2nd respondent; Respondent: 3rd respondent; Respondent: 4th respondent; Respondent: 5th respondent; Respondent: 6th respondent; Respondent: 7th respondent; Respondent: 8th respondent; Respondent: 9th respondent; Respondent (missing Owner): 10th respondent; Respondent (former Occupier, Interest Assigned): 11th respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
26 March 2014
Case Number
LDCS12000/2012
Procedural Posture
Application Under Land (compulsory Sale for Redevelopment) Ordinance (cap. 545) for Compulsory Sale of Inland Lot No. 3536 (nos.205 & 207 Tsat Tsz Mui Road and Nos.4 & 6 Nation Street) / Tribunal Hearing and Decision (order for Compulsory Sale)
Outcome
Order for compulsory sale by public auction for redevelopment granted
Legal Topics
Section 3 Threshold for Application, Section 4 Tests for Justification and Reasonable Steps, Existing Use Value (euv) Valuation, Redevelopment/residual Valuation (rdv), Reserve Price Fixation, Treatment of Missing Owners
Source Language
EN
Property Law Compulsory Sale Building Safety and Structural Engineering Valuation and Redevelopment Finance Section 3 Threshold for Application Section 4 Tests for Justification and Reasonable Steps Existing Use Value (euv) Valuation Redevelopment/residual Valuation (rdv) +2 more

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Parties

1st applicant

Applicant

2nd applicant

Applicant

3rd applicant

Applicant

4th applicant

Applicant

1st respondent

Respondent

2nd respondent

Respondent

3rd respondent

Respondent

4th respondent

Respondent

5th respondent

Respondent

6th respondent

Respondent

7th respondent

Respondent

8th respondent

Respondent

9th respondent

Respondent

10th respondent

Respondent (missing Owner)

11th respondent

Respondent (former Occupier, Interest Assigned)

Procedural Posture

Application Under Land (compulsory Sale for Redevelopment) Ordinance (cap. 545) for Compulsory Sale of Inland Lot No. 3536 (nos.205 & 207 Tsat Tsz Mui Road and Nos.4 & 6 Nation Street) / Tribunal Hearing and Decision (order for Compulsory Sale)

Legal Issues

  1. 1 Whether applicants met ownership threshold under s.3 (and s.3(5) notice)
  2. 2 Whether valuation of minority unit was fair and reasonable under s.4(1)(a)(ii)
  3. 3 Whether redevelopment justified by age and state of repair under s.4(2)(a)

Ratio Decidendi

Applicants satisfied the statutory ownership threshold (applicable threshold reduced to 80% by s.3(5) notice), the valuation of the missing unit was fair and reasonable, experts established the Building is over 53 years old and in a state beyond reasonable economic repair so redevelopment is justified, and the applicants took reasonable steps to acquire outstanding shares; accordingly Tribunal ordered compulsory sale by public auction and fixed the reserve price at HK$164,000,000 (trustee appointed and sale particulars approved).

Court Disposition

Order for compulsory sale by public auction for redevelopment granted

Orders

  • All undivided shares in Section E of Inland Lot No. 3536 (the Lot) to be sold by public auction for purposes of redevelopment
  • Reserve price for the auction fixed at HK$164,000,000