PACIFIC CHINA DEVELOPMENT LTD AND ANOTHER v. The personal representative of CHU TAK HING, deceased, Administratrix of the estate of YU KEI MING, deceased AND ANOTHER

PACIFIC CHINA DEVELOPMENT LTD AND ANOTHER v. The personal representative of CHU TAK HING, deceased, Administratrix of the estate of YU KEI MING, deceased AND ANOTHER

The Tribunal concluded that the applicants met the statutory ownership threshold as lowered to 80% by the Gazette Notice, the EUV assessments (including the minority unit) were fair and reasonable, the buildings are aged and in a state of disrepair rendering redevelopment justified, and the applicants took reasonable steps to acquire the outstanding shares; accordingly an order for sale by public auction with a reserve price of HK$197,000,000 and appointment of specified trustees was made.

Citation
PACIFIC CHINA DEVELOPMENT LTD AND ANOTHER v. The personal representative of CHU TAK HING, deceased, Administratrix of the estate of YU KEI MING, deceased AND ANOTHER
Parties
1st Applicant: Pacific China Development Limited; 2nd Applicant: Longmax Development Limited; 1st Respondent: Personal representative of Chu Tak Hing, Administratrix of the estate of Yu Kei Ming (deceased); 2nd Respondent (discontinued): Lau Chi Ming Sammy, Administrator of the estate of Mak Tor Tai (deceased)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
5 February 2016
Case Number
LDCS10000/2014
Procedural Posture
Land (compulsory Sale for Redevelopment) Application / Judgment (order for Sale Made)
Outcome
Order for compulsory sale by public auction for redevelopment under the Ordinance; reserve price fixed; trustees appointed; particulars and conditions of sale approved; costs order nisi made.
Legal Topics
Compulsory Sale for Redevelopment, Ownership Threshold and Specification of Lower Percentage, Existing Use Value (euv) and Redevelopment Value (rdv) Valuation, Reasonable Steps to Acquire Minority Shares, Building Condition and Redevelopment Justification, Reserve Price Fixation, Appointment of Trustees, Costs Order Nisi
Source Language
EN
Property Law Land Law Administrative Law Valuation Law Building and Construction Law Compulsory Sale for Redevelopment Ownership Threshold and Specification of Lower Percentage Existing Use Value (euv) and Redevelopment Value (rdv) Valuation +5 more

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Parties

Pacific China Development Limited

1st Applicant

Longmax Development Limited

2nd Applicant

Personal representative of Chu Tak Hing, Administratrix of the estate of Yu Kei Ming (deceased)

1st Respondent

Lau Chi Ming Sammy, Administrator of the estate of Mak Tor Tai (deceased)

2nd Respondent (discontinued)

Procedural Posture

Land (compulsory Sale for Redevelopment) Application / Judgment (order for Sale Made)

Legal Issues

  1. 1 Whether applicants met the statutory ownership threshold under s3 of the Ordinance as varied by the s3(5) Notice
  2. 2 Whether the EUV assessed for the missing/minority owner is fair and reasonable and comparable to majority owners' assessments
  3. 3 Whether redevelopment of the Lots is justified on grounds of age and state of repair

Ratio Decidendi

The Tribunal concluded that the applicants met the statutory ownership threshold as lowered to 80% by the Gazette Notice, the EUV assessments (including the minority unit) were fair and reasonable, the buildings are aged and in a state of disrepair rendering redevelopment justified, and the applicants took reasonable steps to acquire the outstanding shares; accordingly an order for sale by public auction with a reserve price of HK$197,000,000 and appointment of specified trustees was made.

Court Disposition

Order for compulsory sale by public auction for redevelopment under the Ordinance; reserve price fixed; trustees appointed; particulars and conditions of sale approved; costs order nisi made.

Orders

  • All undivided shares in the Lots to be sold by public auction for purposes of redevelopment under the Ordinance.
  • Mr Chow Wing Kin Anthony and Ms Chow Suk Han Anna appointed as trustees to discharge trustee duties under the Ordinance and authorized to charge remuneration as set out in Messrs Peter C Wong, Chow & Chow letter dated 13 October 2015.