SUN CRYSTAL LTD AND OTHERS v. CHENG SIU KAU AND OTHERS

SUN CRYSTAL LTD AND OTHERS v. CHENG SIU KAU AND OTHERS

The Tribunal held that the applicants satisfied the statutory threshold (applicants owned more than 80% of undivided shares), redevelopment was justified on grounds of age and state of repair based on uncontradicted expert engineering and building surveys, the applicants took reasonable steps to acquire remaining shares with offers within the acceptable range, the EUV of the building as at 19 June 2015 was determined at HK$440,780,000, and the appropriate RDV/reserve price for auction is HK$1,049,250,000 calculated on the scenario excluding the Caine Road Area but including the Proposed Lane Area; the Caine Road Area was held to have been dedicated/treated as public highway and excluded...

Citation
SUN CRYSTAL LTD AND OTHERS v. CHENG SIU KAU AND OTHERS
Parties
Applicant(s): Applicants; Respondent: 1st Respondent; Respondent: 3rd Respondent; Respondent: 4th Respondent; Respondent: 1st named 5th Respondent; Respondent: 6th Respondent; Respondent: 7th Respondent; Respondent: 8th Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
31 August 2017
Case Number
LDCS6000/2015
Procedural Posture
Compulsory Sale for Redevelopment Under the Land (compulsory Sale for Redevelopment) Ordinance Cap 545 / Trial/judgment (lands Tribunal)
Outcome
Order for sale granted by Lands Tribunal
Legal Topics
Compulsory Sale for Redevelopment, Undivided Shares Threshold, Valuation (euv and Rdv), Building Age and State of Repair, Plot Ratio and Site Coverage, Service Lane/dedication Issues, Costs
Source Language
EN
Land Law Property Planning and Building Valuation Civil Procedure Compulsory Sale for Redevelopment Undivided Shares Threshold Valuation (euv and Rdv) +4 more

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Parties

Applicants

Applicant(s)

1st Respondent

Respondent

3rd Respondent

Respondent

4th Respondent

Respondent

1st named 5th Respondent

Respondent

6th Respondent

Respondent

7th Respondent

Respondent

8th Respondent

Respondent

Procedural Posture

Compulsory Sale for Redevelopment Under the Land (compulsory Sale for Redevelopment) Ordinance Cap 545 / Trial/judgment (lands Tribunal)

Legal Issues

  1. 1 Whether applicants acquired minimum undivided shares under s.3 and the Notice
  2. 2 Whether redevelopment justified by age and/or state of repair under s.4(2)(a)
  3. 3 Determination of existing use value (EUV) of each unit as at 19 June 2015

Ratio Decidendi

The Tribunal held that the applicants satisfied the statutory threshold (applicants owned more than 80% of undivided shares), redevelopment was justified on grounds of age and state of repair based on uncontradicted expert engineering and building surveys, the applicants took reasonable steps to acquire remaining shares with offers within the acceptable range, the EUV of the building as at 19 June 2015 was determined at HK$440,780,000, and the appropriate RDV/reserve price for auction is HK$1,049,250,000 calculated on the scenario excluding the Caine Road Area but including the Proposed Lane Area; the Caine Road Area was held to have been dedicated/treated as public highway and excluded...

Court Disposition

Order for sale granted by Lands Tribunal

Orders

  • Tribunal is satisfied redevelopment justified due to age and state of repair and applicants took reasonable steps to acquire undivided shares
  • All undivided shares in the Lots to be sold by public auction for redevelopment purposes