ROSCO TOYS LTD v. PRIME SUN INVESTMENT CO LTD

ROSCO TOYS LTD v. PRIME SUN INVESTMENT CO LTD

The Tribunal rejected reliance on a single in-development renewal given abnormally low occupancy and possible non-market renewals, adjusted the external comparable (Glendale) by 20% to reflect superior positioning of Carmina Place, cross-checked the result against rateable value, and determined the PMR to be $48,500 per month inclusive; it also granted two specific early-termination options because of the impending major renovation works and the terms of the previous tenancy.

Citation
ROSCO TOYS LTD v. PRIME SUN INVESTMENT CO LTD
Parties
Applicant Tenant: Rosco Toys Limited; Respondent Landlord: Prime Sun Investment Company Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
10 November 2004
Case Number
LDNT116/2004
Procedural Posture
Rent Assessment / Tenancy Renewal (lands Tribunal) / Hearing and Judgment
Outcome
PMR determined at $48,500 per month (inclusive). New two-year tenancy commencing 15 July 2004. Two early-termination options granted. No order as to costs.
Legal Topics
Prevailing Market Rent, Lease Renewal, Option to Determine Tenancy, Comparables and Valuation Evidence
Source Language
EN
Landlord and Tenant Property Rent Assessment Prevailing Market Rent Lease Renewal Option to Determine Tenancy Comparables and Valuation Evidence

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 1 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Rosco Toys Limited

Applicant Tenant

Prime Sun Investment Company Limited

Respondent Landlord

Procedural Posture

Rent Assessment / Tenancy Renewal (lands Tribunal) / Hearing and Judgment

Legal Issues

  1. 1 What is the prevailing market rent (PMR) for the premises for a two-year renewal commencing 15 July 2004?
  2. 2 Whether the tenant should be granted an option to determine the tenancy before expiry and, if so, on what terms.
  3. 3 Whether lettings within the same development are reliable comparables given low occupancy and impending renovation.

Ratio Decidendi

The Tribunal rejected reliance on a single in-development renewal given abnormally low occupancy and possible non-market renewals, adjusted the external comparable (Glendale) by 20% to reflect superior positioning of Carmina Place, cross-checked the result against rateable value, and determined the PMR to be $48,500 per month inclusive; it also granted two specific early-termination options because of the impending major renovation works and the terms of the previous tenancy.

Court Disposition

PMR determined at $48,500 per month (inclusive). New two-year tenancy commencing 15 July 2004. Two early-termination options granted. No order as to costs.

Orders

  • New tenancy of the Premises for a term of two years commencing from 15 July 2004
  • New rent at $48,500 per month (inclusive of Government rates and management fees)