SILVER WISDOM INVESTMENTS LTD AND ANOTHER v. YEUNG HIN KAN AND TAM SAU WAH AND ANOTHER

SILVER WISDOM INVESTMENTS LTD AND ANOTHER v. YEUNG HIN KAN AND TAM SAU WAH AND ANOTHER

The Tribunal found the applicants met the statutory ownership threshold, accepted expert evidence that the Building is aged, functionally obsolete and in very poor/unsafe repair making redevelopment justified, found the applicants made multiple offers that a reputable valuer (Savills) supported and thus were reasonable steps to acquire the remaining share, accepted the residual valuation for redevelopment (RDV) and therefore ordered compulsory sale by public auction with reserve price set at HK$207,300,000 and ancillary directions including appointment of trustees and completion timeframe.

Citation
SILVER WISDOM INVESTMENTS LTD AND ANOTHER v. YEUNG HIN KAN AND TAM SAU WAH AND ANOTHER
Parties
1st Applicant: Silver Wisdom Investments Limited; 2nd Applicant: Glory Step Investments Limited; 1st Respondent: Yeung Hin Kan and Tam Sau Wah; 2nd Respondent (discontinued): Chan Kwok Lam and Tam Shiu Mui
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
2 December 2013
Case Number
LDCS7000/2013
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment (lands Tribunal)
Outcome
Order for sale granted: compulsory sale of all undivided shares in the Lot for purposes of redevelopment; reserve price set; trustees appointed; sale by public auction ordered; liberty to apply for further directions; costs order nisi (no order as to costs)
Legal Topics
Compulsory Sale, Redevelopment Justification, Existing Use Value (euv) Determination, Reserve Price / Redevelopment Value (rdv), Reasonable Steps to Acquire Minority Shares
Source Language
EN
Property Law Compulsory Purchase / Compulsory Sale Building Safety and Regulation Valuation Law Compulsory Sale Redevelopment Justification Existing Use Value (euv) Determination Reserve Price / Redevelopment Value (rdv) +1 more

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Parties

Silver Wisdom Investments Limited

1st Applicant

Glory Step Investments Limited

2nd Applicant

Yeung Hin Kan and Tam Sau Wah

1st Respondent

Chan Kwok Lam and Tam Shiu Mui

2nd Respondent (discontinued)

Procedural Posture

Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment (lands Tribunal)

Legal Issues

  1. 1 Whether applicants satisfied the s.3 ownership threshold (90%) to bring the application
  2. 2 Whether redevelopment is justified by age or state of repair under s.4(2)(a)
  3. 3 Whether the applicants took reasonable steps to acquire all undivided shares under s.4(2)(b)

Ratio Decidendi

The Tribunal found the applicants met the statutory ownership threshold, accepted expert evidence that the Building is aged, functionally obsolete and in very poor/unsafe repair making redevelopment justified, found the applicants made multiple offers that a reputable valuer (Savills) supported and thus were reasonable steps to acquire the remaining share, accepted the residual valuation for redevelopment (RDV) and therefore ordered compulsory sale by public auction with reserve price set at HK$207,300,000 and ancillary directions including appointment of trustees and completion timeframe.

Court Disposition

Order for sale granted: compulsory sale of all undivided shares in the Lot for purposes of redevelopment; reserve price set; trustees appointed; sale by public auction ordered; liberty to apply for further directions; costs order nisi (no order as to costs)

Orders

  • Tribunal satisfied value of 1st respondent's unit as assessed is fair and reasonable and comparable with applicants' units
  • Tribunal satisfied redevelopment of the Lot is justified due to age and state of repair and that applicants took reasonable steps to acquire all undivided shares