CHAMPION SUCCESS LTD AND ANOTHER v. SOMCHIT SERTTHIN AND OTHERS

CHAMPION SUCCESS LTD AND ANOTHER v. SOMCHIT SERTTHIN AND OTHERS

The Tribunal held that Applicants met the statutory ownership threshold (85.42% ≥ 80% under s.3(5)), redevelopment was justified on grounds of age and poor state of repair based on expert structural and condition evidence and high repair costs, Applicants took reasonable steps to acquire the minority share (offers and settlement within fair range), proceeds to be apportioned by EUV, and the redevelopment (residual) valuation of $77,000,000 is an appropriate reserve price; accordingly an order for sale by public auction was granted with specified trustees and conditions.

Citation
CHAMPION SUCCESS LTD AND ANOTHER v. SOMCHIT SERTTHIN AND OTHERS
Parties
1st Applicant: Champion Success Limited (創意昇有限公司); 2nd Applicant: All Bright Hong Kong Investment Limited (恒輝香港投資有限公司); 1st Respondent: Somchit Sertthin and Somboon Sertthin; 2nd Respondent: Wing Cheung Machinery Company Limited; 3rd Respondent: Yip Cheong Ming (appointed to represent the estate of Lo Yuet Kiu, deceased)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
29 June 2012
Case Number
LDCS40000/2011
Procedural Posture
Land Compulsory Sale Application No. 40000 of 2011 / Judgment (29 June 2012)
Outcome
Order for sale granted in favour of the Applicants under the Land (Compulsory Sale for Redevelopment) Ordinance Cap.545
Legal Topics
Compulsory Sale for Redevelopment, Threshold Ownership Percentage Under S.3 and S.3(5) Cap.545, Justification for Redevelopment: Age and State of Repair, Reasonable Steps to Acquire Minority Shares, Valuation: EUV and RDV, Reserve Price Determination, Apportionment of Proceeds Under Schedule 1
Source Language
EN
Property Law Compulsory Purchase/compulsory Sale Building and Construction Law Valuation Law Trusts (sale Proceeds Trusteeship) Compulsory Sale for Redevelopment Threshold Ownership Percentage Under S.3 and S.3(5) Cap.545 Justification for Redevelopment: Age and State of Repair +3 more

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Parties

Champion Success Limited (創意昇有限公司)

1st Applicant

All Bright Hong Kong Investment Limited (恒輝香港投資有限公司)

2nd Applicant

Somchit Sertthin and Somboon Sertthin

1st Respondent

Wing Cheung Machinery Company Limited

2nd Respondent

Yip Cheong Ming (appointed to represent the estate of Lo Yuet Kiu, deceased)

3rd Respondent

Procedural Posture

Land Compulsory Sale Application No. 40000 of 2011 / Judgment (29 June 2012)

Legal Issues

  1. 1 Whether Applicants met statutory ownership threshold to apply under s.3 of the Ordinance
  2. 2 Whether redevelopment is justified on grounds of age and/or state of repair under s.4(2)(a)
  3. 3 Whether Applicants took reasonable steps to acquire the 3rd Respondent’s undivided share under s.4(2)(b)

Ratio Decidendi

The Tribunal held that Applicants met the statutory ownership threshold (85.42% ≥ 80% under s.3(5)), redevelopment was justified on grounds of age and poor state of repair based on expert structural and condition evidence and high repair costs, Applicants took reasonable steps to acquire the minority share (offers and settlement within fair range), proceeds to be apportioned by EUV, and the redevelopment (residual) valuation of $77,000,000 is an appropriate reserve price; accordingly an order for sale by public auction was granted with specified trustees and conditions.

Court Disposition

Order for sale granted in favour of the Applicants under the Land (Compulsory Sale for Redevelopment) Ordinance Cap.545

Orders

  • This Tribunal determines the EUV of the 3rd Respondent’s undivided share (Flat B, 4th Floor, No.92 Tak Cheong Street) as $960,000
  • The Tribunal is satisfied redevelopment of the Lots is justified due to age and state of repair and that Applicants took reasonable steps to acquire the 3rd Respondent’s undivided shares