GOOD FAITH PROPERTIES LTD AND OTHERS v. CIBEAN DEVELOPMENT COMPANY LTD

GOOD FAITH PROPERTIES LTD AND OTHERS v. CIBEAN DEVELOPMENT COMPANY LTD

On a purposive construction of s.4(2) of Cap.545 the Tribunal must be satisfied at the hearing that redevelopment is justified and that the majority owner has taken reasonable steps to acquire outstanding shares; 'reasonable steps' includes offers made both pre- and post-application. Accepting the applicants' expert evidence, the Building is justified for redevelopment due to age and dangerous state; the applicants took reasonable steps and made offers within a broadly fair and reasonable range; accordingly an order for compulsory sale is granted and the Tribunal sets the reserve price at HKD 732,300,000 based on the Tribunal's adopted valuations (shop EUV HKD 35.20M, domestic EUV HKD...

Citation
GOOD FAITH PROPERTIES LTD AND OTHERS v. CIBEAN DEVELOPMENT COMPANY LTD
Parties
Applicants (majority Owners): Good Faith Properties Ltd and others; Respondent (minority Owner): Respondent (owner of basement shop, No.20 Caine Road)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
31 May 2013
Case Number
LDCS42000/2011
Procedural Posture
Compulsory Sale Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Judgment Following Trial
Outcome
Order for compulsory sale granted
Legal Topics
Compulsory Sale for Redevelopment, Justification for Redevelopment (age and State of Repair), Reasonable Steps to Acquire Minority Shares, Valuation: EUV and RDV, Reserve Price Determination, Procedural Timing of Offers
Source Language
EN
Land Law Property Valuation Statutory Interpretation Urban Renewal Administrative Law Compulsory Sale for Redevelopment Justification for Redevelopment (age and State of Repair) Reasonable Steps to Acquire Minority Shares +3 more

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Parties

Good Faith Properties Ltd and others

Applicants (majority Owners)

Respondent (owner of basement shop, No.20 Caine Road)

Respondent (minority Owner)

Procedural Posture

Compulsory Sale Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Judgment Following Trial

Legal Issues

  1. 1 Whether redevelopment of the Lot justified by age and state of repair of the Building
  2. 2 Whether the applicants took reasonable steps to acquire all undivided shares including whether post-application offers are cognizable
  3. 3 Whether the offers made were fair and reasonable

Ratio Decidendi

On a purposive construction of s.4(2) of Cap.545 the Tribunal must be satisfied at the hearing that redevelopment is justified and that the majority owner has taken reasonable steps to acquire outstanding shares; 'reasonable steps' includes offers made both pre- and post-application. Accepting the applicants' expert evidence, the Building is justified for redevelopment due to age and dangerous state; the applicants took reasonable steps and made offers within a broadly fair and reasonable range; accordingly an order for compulsory sale is granted and the Tribunal sets the reserve price at HKD 732,300,000 based on the Tribunal's adopted valuations (shop EUV HKD 35.20M, domestic EUV HKD...

Court Disposition

Order for compulsory sale granted

Orders

  • All undivided shares in the Lot to be sold by public auction for purposes of redevelopment of the Lot
  • Parties to agree nomination of Trustees within 14 days and file nomination for Tribunal approval; failing which apply to Tribunal for directions