WHEELOCK SDL FINANCE LTD AND OTHERS v. I-AUTOMATION LTD FORMERLY KNOWN AS INDUSTRIAL AUTOMATION LTD AND OTHERS

WHEELOCK SDL FINANCE LTD AND OTHERS v. I-AUTOMATION LTD FORMERLY KNOWN AS INDUSTRIAL AUTOMATION LTD AND OTHERS

The Tribunal held that 'each property' in Part 1 of Schedule 1 may mean a merged property in reality and that valuation methodology is a question of valuation to be resolved by market evidence; on facts the Reinstatement Approach was appropriate for the merged 5th–8th and 9th–12th floor properties because reinstatement to individual floors was feasible, financially attractive and reflected highest and best use; redevelopment was justified by expert evidence on age and structural deterioration; applicants had taken reasonable steps to purchase minority interests; RDV was fixed at HKD 728000000 and reserve price set accordingly.

Citation
[2024] HKLdT 54
Parties
1st Applicant: WHEELOCK SDL FINANCE LIMITED; 2nd Applicant: SAPPHIRE IDEAL LIMITED; 3rd Applicant: WCH INVESTMENT LIMITED; 4th Applicant: MILLION WAY LOGISTICS LIMITED; 5th Applicant: 5th Applicant; 1st Respondent: 1st Respondent; 2nd Respondent: 2nd Respondent; 3rd Respondent: 3rd Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
21 June 2024
Case Number
LDCS10000/2022
Procedural Posture
Application Under the Land (compulsory Sale for Redevelopment) Ordinance Cap 545 / Judgment (lands Tribunal)
Outcome
Order for sale granted in favour of the applicants; reserve price set at HKD 728000000; trustees appointed; costs order nisi made against applicants
Legal Topics
Redevelopment Justification, Valuation Methods (reinstatement V As‑is), Interpretation of 'each Property' in Schedule 1, Reasonable Steps to Acquire Minority Shares, Setting Reserve Price at Auction
Source Language
EN
Land Compulsory Sale Property Valuation Building Safety/regulatory Enforcement Civil Procedure Redevelopment Justification Valuation Methods (reinstatement V As‑is) Interpretation of 'each Property' in Schedule 1 Reasonable Steps to Acquire Minority Shares +1 more

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Parties

WHEELOCK SDL FINANCE LIMITED

1st Applicant

SAPPHIRE IDEAL LIMITED

2nd Applicant

WCH INVESTMENT LIMITED

3rd Applicant

MILLION WAY LOGISTICS LIMITED

4th Applicant

5th Applicant

5th Applicant

1st Respondent

1st Respondent

2nd Respondent

2nd Respondent

3rd Respondent

3rd Respondent

Procedural Posture

Application Under the Land (compulsory Sale for Redevelopment) Ordinance Cap 545 / Judgment (lands Tribunal)

Legal Issues

  1. 1 Whether applicants satisfied statutory ownership and documentary prerequisites under s3(1)
  2. 2 Market value of each property on the lot as at 22 March 2022 under Part 1 Schedule 1
  3. 3 Whether redevelopment of the lot is justified due to age or state of repair under s4(2)(a)(i)

Ratio Decidendi

The Tribunal held that 'each property' in Part 1 of Schedule 1 may mean a merged property in reality and that valuation methodology is a question of valuation to be resolved by market evidence; on facts the Reinstatement Approach was appropriate for the merged 5th–8th and 9th–12th floor properties because reinstatement to individual floors was feasible, financially attractive and reflected highest and best use; redevelopment was justified by expert evidence on age and structural deterioration; applicants had taken reasonable steps to purchase minority interests; RDV was fixed at HKD 728000000 and reserve price set accordingly.

Court Disposition

Order for sale granted in favour of the applicants; reserve price set at HKD 728000000; trustees appointed; costs order nisi made against applicants

Orders

  • All the undivided shares in the Lot be sold by way of public auction for the purposes of the redevelopment of the Lot
  • Mr Chow Wing Kin Anthony and Ms Chow Suk Han Anna be appointed the trustees to discharge duties imposed under the Ordinance in relation to the sale of the Lot