ALLIANCE FAME LTD AND OTHERS v. MAK KAM TO AND OTHERS

ALLIANCE FAME LTD AND OTHERS v. MAK KAM TO AND OTHERS

The Tribunal held applicants were entitled to apply under the lowered 80% threshold; on expert evidence the Building was over 50 years and in poor structural and general repair such that redevelopment was justified; applicants had taken reasonable steps to acquire remaining shares by multiple offers above EUV/RDV; Tribunal accepted the applicants' residual valuation methodology with adjustments and fixed the land/RDV and auction reserve price at HKD 1,620,000,000, ordered sale by public auction, appointed trustees and made a costs order nisi in favour of certain respondents.

Citation
ALLIANCE FAME LTD AND OTHERS v. MAK KAM TO AND OTHERS
Parties
Applicants: 1st to 12th Applicants; Respondent: 1st Respondent; Respondent: 2nd Respondent; Respondent: 8th Respondent; Respondent: 9th Respondent; Respondent: 10th Respondent; Respondent: 11th Respondent; Respondent: 12th Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
4 August 2017
Case Number
LDCS9000/2015
Procedural Posture
Compulsory Sale for Redevelopment Under Land (compulsory Sale for Redevelopment) Ordinance Cap 545 / Hearing and Judgment (lands Tribunal)
Outcome
Application granted: compulsory sale order made and reserve price fixed
Legal Topics
Compulsory Sale for Redevelopment, Existing Use Value Vs Redevelopment Value, Residual Valuation, Reasonable Steps to Acquire Shares, Redevelopment Justified by Age and State of Repair, Costs
Source Language
EN
Property Valuation Administrative Law Civil Procedure Compulsory Sale for Redevelopment Existing Use Value Vs Redevelopment Value Residual Valuation Reasonable Steps to Acquire Shares +2 more

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Parties

1st to 12th Applicants

Applicants

1st Respondent

Respondent

2nd Respondent

Respondent

8th Respondent

Respondent

9th Respondent

Respondent

10th Respondent

Respondent

11th Respondent

Respondent

12th Respondent

Respondent

Procedural Posture

Compulsory Sale for Redevelopment Under Land (compulsory Sale for Redevelopment) Ordinance Cap 545 / Hearing and Judgment (lands Tribunal)

Legal Issues

  1. 1 Whether applicants met statutory ownership threshold to apply
  2. 2 Proper approach to determine Existing Use Value (EUV) of units
  3. 3 Whether redevelopment of the lot justified by age and state of repair

Ratio Decidendi

The Tribunal held applicants were entitled to apply under the lowered 80% threshold; on expert evidence the Building was over 50 years and in poor structural and general repair such that redevelopment was justified; applicants had taken reasonable steps to acquire remaining shares by multiple offers above EUV/RDV; Tribunal accepted the applicants' residual valuation methodology with adjustments and fixed the land/RDV and auction reserve price at HKD 1,620,000,000, ordered sale by public auction, appointed trustees and made a costs order nisi in favour of certain respondents.

Court Disposition

Application granted: compulsory sale order made and reserve price fixed

Orders

  • Tribunal satisfied redevelopment justified and applicants took reasonable steps to acquire remaining shares
  • All undivided shares in the Lot to be sold by public auction for redevelopment under s.4(1)(b) Cap 545