PACIFIC CROWN ENTERPRISES LTD v. MAN YU ON AND OTHERS

PACIFIC CROWN ENTERPRISES LTD v. MAN YU ON AND OTHERS

The Tribunal accepted the expert valuations and condition reports, found the applicant met the statutory ownership threshold and had taken reasonable steps to acquire the minority interest on fair and reasonable terms, concluded redevelopment was justified on grounds of age and state of repair because repair costs and functional obsolescence made repair economically unjustifiable, and therefore granted an order for compulsory sale with the reserve price set at the assessed RDV of HKD 292,000,000, appointed trustees and endorsed sale particulars and a 6-year completion timetable.

Citation
PACIFIC CROWN ENTERPRISES LTD v. MAN YU ON AND OTHERS
Parties
Applicant: Applicant; 1st Respondent: 1st Respondent; 2nd Respondent: 2nd Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
12 April 2013
Case Number
LDCS32000/2011
Procedural Posture
Compulsory Sale Under Land (compulsory Sale for Redevelopment) Ordinance (cap. 545) / Determination and Orders Following Trial (judgment)
Outcome
Order for compulsory sale granted under Cap. 545; sale by public auction authorized; trustees appointed; reserve price fixed; redevelopment timetable imposed; costs order nisi (no order as to costs).
Legal Topics
Compulsory Sale, Redevelopment Justification (age/state of Repair), Valuation (euv and Rdv), Appointment of Trustees, Reserve Price for Auction, Costs
Source Language
EN
Land Law Property Law Valuation Law Tribunal Procedure Compulsory Sale Redevelopment Justification (age/state of Repair) Valuation (euv and Rdv) Appointment of Trustees +2 more

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Parties

Applicant

Applicant

1st Respondent

1st Respondent

2nd Respondent

2nd Respondent

Procedural Posture

Compulsory Sale Under Land (compulsory Sale for Redevelopment) Ordinance (cap. 545) / Determination and Orders Following Trial (judgment)

Legal Issues

  1. 1 Whether applicant met statutory ownership threshold to apply (>=90%)
  2. 2 Whether applicant took reasonable steps to acquire remaining undivided shares
  3. 3 Whether redevelopment is justified on grounds of age or state of repair

Ratio Decidendi

The Tribunal accepted the expert valuations and condition reports, found the applicant met the statutory ownership threshold and had taken reasonable steps to acquire the minority interest on fair and reasonable terms, concluded redevelopment was justified on grounds of age and state of repair because repair costs and functional obsolescence made repair economically unjustifiable, and therefore granted an order for compulsory sale with the reserve price set at the assessed RDV of HKD 292,000,000, appointed trustees and endorsed sale particulars and a 6-year completion timetable.

Court Disposition

Order for compulsory sale granted under Cap. 545; sale by public auction authorized; trustees appointed; reserve price fixed; redevelopment timetable imposed; costs order nisi (no order as to costs).

Orders

  • Apportionment ratio for 2nd Respondent's property fixed at 3.6277% under s10(3) and Part 3 of Schedule 1 of the Ordinance
  • All undivided shares in the Lots to be sold by public auction for redevelopment of the Lots