FAIRBO INVESTMENT LTD v. LEUNG CHIT, THE PERSON APPOINTED BY ORDER DATED 22ND NOVEMBER 2017 TO REPRESENT THE ESTATE OF LEUNG TAI CHEUNG ALSO KNOWN AS LIANG TAI CHEUNG AND LIANG CHUN, DECEASED AND ANOTHER

FAIRBO INVESTMENT LTD v. LEUNG CHIT, THE PERSON APPOINTED BY ORDER DATED 22ND NOVEMBER 2017 TO REPRESENT THE ESTATE OF LEUNG TAI CHEUNG ALSO KNOWN AS LIANG TAI CHEUNG AND LIANG CHUN, DECEASED AND ANOTHER

The tribunal held the applicant satisfied the statutory undivided share threshold, redevelopment was justified by age and poor condition of the buildings, the applicant took reasonable steps to acquire remaining shares, the EUV assessments in the applicant's valuation were accepted as fair and reasonable, and the...

Source-derived case information.

Citation
[2018] HKLdT 57
Parties
Applicant: Applicant; Respondent: 1st Respondent; Respondent: 2nd Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
26 July 2018
Case Number
LDCS23000/2014
Procedural Posture
Compulsory Sale for Redevelopment / Judgment
Outcome
Order for sale granted for compulsory sale of the lots as a composite site for redevelopment; trustees appointed; reserve price set; proceeds to be apportioned by EUV; completion period imposed; costs order nisi made
Legal Topics
Land (compulsory Sale for Redevelopment) Ordinance, Reserve Price Determination, Apportionment of Sale Proceeds, Adverse Possession, Undivided Shares Threshold, Existing Use Value (euv), Residual Development Value (rdv), Reasonable Steps to Acquire
Source Language
en
Land Law Property Valuation Civil Procedure Land (compulsory Sale for Redevelopment) Ordinance Reserve Price Determination Apportionment of Sale Proceeds Adverse Possession +4 more

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Summary, issues, holding and outcome

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Parties

Applicant

Applicant

1st Respondent

Respondent

2nd Respondent

Respondent

Procedural Posture

Compulsory Sale for Redevelopment / Judgment

Legal Issues

  1. 1 Whether applicant held required undivided shares to bring application under the Ordinance
  2. 2 Whether redevelopment is justified by age and/or state of repair of the buildings
  3. 3 Determination of existing use value (EUV) of all units as at relevant valuation date

Ratio Decidendi

The tribunal held the applicant satisfied the statutory undivided share threshold, redevelopment was justified by age and poor condition of the buildings, the applicant took reasonable steps to acquire remaining shares, the EUV assessments in the applicant's valuation were accepted as fair and reasonable, and the RDV was fixed at HKD 418,000,000 (using a 10% profit margin) leading to an order for sale of the lots as a composite site with proceeds apportioned by EUV.

Court Disposition

Order for sale granted for compulsory sale of the lots as a composite site for redevelopment; trustees appointed; reserve price set; proceeds to be apportioned by EUV; completion period imposed; costs order nisi made