WAY CREATION LTD AND OTHERS v. LAI HING ENTERPRISES LTD AND OTHERS

WAY CREATION LTD AND OTHERS v. LAI HING ENTERPRISES LTD AND OTHERS

The tribunal was satisfied on evidential material (independent structural and building reports) that the Building's age and poor state of repair justified redevelopment, that the applicants had taken reasonable steps to acquire all undivided shares by making offers based on independent valuation, and accordingly made an order for compulsory sale by public auction with a reserve price of HKD 267,000,000, appointed trustees and granted costs on terms stated.

Citation
WAY CREATION LTD AND OTHERS v. LAI HING ENTERPRISES LTD AND OTHERS
Parties
1st Applicant: Way Creation Limited; 2nd Applicant: Gold Chain Corporation Limited; 3rd Applicant: City Fame Development Limited; 4th Applicant: Grace Year Corporation Limited; 5th Applicant: Easy Wide Holdings Limited; 6th Applicant (struck Out): Lo Man Ching Ava; 1st Respondent: Lai Hing Enterprises Limited; 2nd Respondent: Ka Wing Logistics Limited; 5th Respondent: Lam Pui Kei
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
14 October 2016
Case Number
LDCS17000/2014
Procedural Posture
Land (compulsory Sale for Redevelopment) Application / Judgment (final Determination)
Outcome
Application for compulsory sale granted.
Legal Topics
Compulsory Sale for Redevelopment, Ownership Threshold Under S.3, Section 4(2)(a) Age and State of Repair Test, Section 4(2)(b) Reasonable Steps to Acquire Minority Shares, Existing Use Value (euv) and Redevelopment Value (rdv) Valuation, Reserve Price for Auction, Method of Sale (public Auction), Costs Orders
Source Language
EN
Property Law Land Law Civil Procedure Valuation Law Administrative Law Compulsory Sale for Redevelopment Ownership Threshold Under S.3 Section 4(2)(a) Age and State of Repair Test +5 more

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Parties

Way Creation Limited

1st Applicant

Gold Chain Corporation Limited

2nd Applicant

City Fame Development Limited

3rd Applicant

Grace Year Corporation Limited

4th Applicant

Easy Wide Holdings Limited

5th Applicant

Lo Man Ching Ava

6th Applicant (struck Out)

Lai Hing Enterprises Limited

1st Respondent

Ka Wing Logistics Limited

2nd Respondent

Lam Pui Kei

5th Respondent

Procedural Posture

Land (compulsory Sale for Redevelopment) Application / Judgment (final Determination)

Legal Issues

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

Ratio Decidendi

The tribunal was satisfied on evidential material (independent structural and building reports) that the Building's age and poor state of repair justified redevelopment, that the applicants had taken reasonable steps to acquire all undivided shares by making offers based on independent valuation, and accordingly made an order for compulsory sale by public auction with a reserve price of HKD 267,000,000, appointed trustees and granted costs on terms stated.

Court Disposition

Application for compulsory sale granted.

Orders

  • Order for sale by public auction of all undivided shares in the Lots for redevelopment
  • Reserve price for the auction fixed at HKD 267000000