CENTURY TREASURE LTD AND ANOTHER v. OR PUI KWAN AND OTHERS

CENTURY TREASURE LTD AND ANOTHER v. OR PUI KWAN AND OTHERS

The tribunal granted the compulsory sale order: it found (1) the applicants met the statutory ownership threshold under the Notice, (2) the Building is obsolete and in poor repair so redevelopment is justified under section 4(2)(a), (3) the applicants took reasonable steps to acquire remaining shares under section 4(2)(b) because offers reflected proportionate shares of RDV and fell within fair and reasonable range, (4) Schedule 2(2) requires the reserve price to be based on redevelopment potential of the subject lots on their own and excludes merged site uplift absent clear evidence, (5) the constitutional challenge to excluding merged site factor failed, and (6) on valuation evidence...

Citation
[2023] HKLdT 55
Parties
1st Applicant: Century Treasure Limited; 2nd Applicant: Universal Support Limited; 1st Respondent: 1st Respondent (Flat A/B/C on 2nd Floor etc); 2nd Respondent: 2nd Respondent; 3rd Respondent: 3rd Respondent; 4th Respondent: 4th Respondent; 5th Respondent: 5th Respondent; 6th Respondent: 6th Respondent; 7th Respondent: 7th Respondent (mentally incapacitated; represented by Committee R4)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
7 September 2023
Case Number
LDCS4000/2021
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment After Trial
Outcome
Order for sale granted in favour of the applicants
Legal Topics
Compulsory Sale for Redevelopment, Redevelopment Justification (age/state of Repair), Valuation (euv and Rdv), Reserve Price Setting, Merged Site Factor/hope Value, Reasonable Steps to Acquire Minority Shares, Site Classification and Setback
Source Language
EN
Land Law Property Law Valuation Law Administrative/constitutional Law Compulsory Sale for Redevelopment Redevelopment Justification (age/state of Repair) Valuation (euv and Rdv) Reserve Price Setting +3 more

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Parties

Century Treasure Limited

1st Applicant

Universal Support Limited

2nd Applicant

1st Respondent (Flat A/B/C on 2nd Floor etc)

1st Respondent

2nd Respondent

2nd Respondent

3rd Respondent

3rd Respondent

4th Respondent

4th Respondent

5th Respondent

5th Respondent

6th Respondent

6th Respondent

7th Respondent (mentally incapacitated; represented by Committee R4)

7th Respondent

Procedural Posture

Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment After Trial

Legal Issues

  1. 1 What is the existing use value (EUV) of all units as at 25 January 2021?
  2. 2 Whether redevelopment of the lots is justified due to age and/or state of repair under section 4(2)(a) of the Ordinance
  3. 3 Whether applicants took reasonable steps to acquire all undivided shares under section 4(2)(b)

Ratio Decidendi

The tribunal granted the compulsory sale order: it found (1) the applicants met the statutory ownership threshold under the Notice, (2) the Building is obsolete and in poor repair so redevelopment is justified under section 4(2)(a), (3) the applicants took reasonable steps to acquire remaining shares under section 4(2)(b) because offers reflected proportionate shares of RDV and fell within fair and reasonable range, (4) Schedule 2(2) requires the reserve price to be based on redevelopment potential of the subject lots on their own and excludes merged site uplift absent clear evidence, (5) the constitutional challenge to excluding merged site factor failed, and (6) on valuation evidence...

Court Disposition

Order for sale granted in favour of the applicants

Orders

  • All undivided shares in the Lots to be sold by public auction for redevelopment purposes
  • Mr Cheung Wood Keung and Ms Mok Ka Cheuk Cecilia appointed as trustees to carry out sale duties under the Ordinance