LANADA (BVI) CO LTD AND ANOTHER v. THUNDER SHARP LTD AND OTHERS

LANADA (BVI) CO LTD AND ANOTHER v. THUNDER SHARP LTD AND OTHERS

The tribunal concluded the applicants satisfied the statutory ownership threshold (applicable 80% under the Notice), established redevelopment was justified by age and poor state of repair on uncontradicted expert evidence, and had taken reasonable steps to acquire remaining shares (offers, mediation invitations, and practical impossibility due to deceased owners and lack of probate). The tribunal accepted the EUV assessment excluding positive value for UBW ($163,280,000) and after adjusting certain valuation inputs accepted a residual redevelopment value (RDV) of $276,000,000 for the merged site. On that basis an order for sale by public auction as a merged site with apportionment of...

Citation
[2021] HKLdT 11
Parties
1st Applicant: LANADA (BVI) COMPANY LIMITED; 2nd Applicant: AMBER SHINE LIMITED; 2nd Respondent: The Personal Representative of Cheung Wai Ming Sean; 4th Respondent: The Personal Representative of Chu Yuk Chiu; 7th Respondent: The Personal Representative of Lau Soon Yau
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
25 February 2021
Case Number
LDCS9000/2020
Procedural Posture
Application Under the Land (compulsory Sale for Redevelopment) Ordinance for Compulsory Sale for Redevelopment / Judgment Following Trial (lands Tribunal)
Outcome
Order for sale granted in favour of the applicants
Legal Topics
Compulsory Sale for Redevelopment Under Land (compulsory Sale for Redevelopment) Ordinance, Ownership Threshold (section 3) and Specification of Lower Percentage, Justification for Redevelopment (section 4(2)(a)), Reasonable Steps to Acquire Minority Shares (section 4(2)(b)), Determination of EUV and RDV, Apportionment of Sale Proceeds
Source Language
EN
Property Law Compulsory Purchase/compulsory Sale Land Use and Redevelopment Valuation Law Civil Procedure Compulsory Sale for Redevelopment Under Land (compulsory Sale for Redevelopment) Ordinance Ownership Threshold (section 3) and Specification of Lower Percentage Justification for Redevelopment (section 4(2)(a)) +3 more

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Parties

LANADA (BVI) COMPANY LIMITED

1st Applicant

AMBER SHINE LIMITED

2nd Applicant

The Personal Representative of Cheung Wai Ming Sean

2nd Respondent

The Personal Representative of Chu Yuk Chiu

4th Respondent

The Personal Representative of Lau Soon Yau

7th Respondent

Procedural Posture

Application Under the Land (compulsory Sale for Redevelopment) Ordinance for Compulsory Sale for Redevelopment / Judgment Following Trial (lands Tribunal)

Legal Issues

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

Ratio Decidendi

The tribunal concluded the applicants satisfied the statutory ownership threshold (applicable 80% under the Notice), established redevelopment was justified by age and poor state of repair on uncontradicted expert evidence, and had taken reasonable steps to acquire remaining shares (offers, mediation invitations, and practical impossibility due to deceased owners and lack of probate). The tribunal accepted the EUV assessment excluding positive value for UBW ($163,280,000) and after adjusting certain valuation inputs accepted a residual redevelopment value (RDV) of $276,000,000 for the merged site. On that basis an order for sale by public auction as a merged site with apportionment of...

Court Disposition

Order for sale granted in favour of the applicants

Orders

  • All the undivided shares in the Lots be sold by public auction for redevelopment
  • Mr Ma Ho Fai and Ms Hung Suet Shan Catherine appointed trustees to discharge duties under the Ordinance