SARFORD DEVELOPMENT LTD AND OTHERS v. SUPER STAR PROPERTIES LTD AND ANOTHER

SARFORD DEVELOPMENT LTD AND OTHERS v. SUPER STAR PROPERTIES LTD AND ANOTHER

Applicants met the statutory ownership threshold (80% applicable) and produced unchallenged expert evidence that the buildings are over 50 years old and in poor state of repair such that redevelopment is justified; applicants took reasonable steps to acquire remaining shares (offers above the EUV); on valuation disputes the Tribunal adopted a reasoned mix of comparable-based and investment approaches for EUV and a residual method for RDV, arriving at a land/RDV/reserve price of HKD 131,690,000; accordingly a compulsory sale by public auction was ordered with trustees appointed and costs to applicants on High Court scale.

Citation
[2020] HKLdT 8
Parties
1st Applicant: Sarford Development Limited; 2nd Applicant: Triumph Base Investment Limited; 3rd Applicant: Hostford Development Limited; 1st Respondent: Super Star Properties Limited; 2nd Respondent (discontinued): Faith Bright Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
27 March 2020
Case Number
LDCS14000/2018
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance Application / Final Judgment (lands Tribunal)
Outcome
Compulsory sale order granted; public auction ordered; reserve price fixed; trustees appointed; costs awarded to respondent paid by applicants
Legal Topics
Compulsory Sale for Redevelopment, Redevelopment Justification (age/state of Repair), Valuation (euv and Rdv), Threshold Ownership Percentage, Building/occupation Permit Issues, Appointment of Sale Trustees, Costs
Source Language
EN
Property Law Land Law Valuation Law Building and Construction Law Administrative/statutory Procedure Compulsory Sale for Redevelopment Redevelopment Justification (age/state of Repair) Valuation (euv and Rdv) +4 more

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Parties

Sarford Development Limited

1st Applicant

Triumph Base Investment Limited

2nd Applicant

Hostford Development Limited

3rd Applicant

Super Star Properties Limited

1st Respondent

Faith Bright Limited

2nd Respondent (discontinued)

Procedural Posture

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

Legal Issues

  1. 1 Whether applicants met statutory ownership threshold to apply
  2. 2 Whether redevelopment of the buildings is justified by age or state of repair
  3. 3 Whether applicants took reasonable steps to acquire remaining undivided shares on fair and reasonable terms

Ratio Decidendi

Applicants met the statutory ownership threshold (80% applicable) and produced unchallenged expert evidence that the buildings are over 50 years old and in poor state of repair such that redevelopment is justified; applicants took reasonable steps to acquire remaining shares (offers above the EUV); on valuation disputes the Tribunal adopted a reasoned mix of comparable-based and investment approaches for EUV and a residual method for RDV, arriving at a land/RDV/reserve price of HKD 131,690,000; accordingly a compulsory sale by public auction was ordered with trustees appointed and costs to applicants on High Court scale.

Court Disposition

Compulsory sale order granted; public auction ordered; reserve price fixed; trustees appointed; costs awarded to respondent paid by applicants

Orders

  • Redevelopment of the Lots justified and applicants have taken reasonable steps to acquire all undivided shares; order for sale made under s.4(1)(b) of the Ordinance
  • All undivided shares in the Lots to be sold by public auction for redevelopment purposes