WORLDMAN DEVELOPMENT LTD v. THE PERSONAL REPRESENTATIVES OF CHAN CHAU LING, DECEASED

WORLDMAN DEVELOPMENT LTD v. THE PERSONAL REPRESENTATIVES OF CHAN CHAU LING, DECEASED

The Tribunal held the applicant was entitled to apply because the s.3(5) Notice reduced the threshold to 80% and the applicant owned on average 87.5% of the undivided shares in the connected lots; the Savills EUV assessments were accepted as fair and reasonable for the missing owner; expert building and structural evidence established redevelopment was justified; the applicant took reasonable steps to acquire the minority interest; the RDV evidence supported fixing the auction reserve at HK$105,000,000; accordingly an order for compulsory sale by public auction with appointed trustees and solicitors and dispensed service on the missing respondent was made.

Citation
WORLDMAN DEVELOPMENT LTD v. THE PERSONAL REPRESENTATIVES OF CHAN CHAU LING, DECEASED
Parties
Applicant: Applicant; Respondent: Respondent (missing)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
21 July 2014
Case Number
LDCS8000/2013
Procedural Posture
Application Under Land (compulsory Sale for Redevelopment) Ordinance, Cap. 545 / Hearing and Determination on Application for Compulsory Sale and Valuation
Outcome
Application granted: order for compulsory sale by public auction; reserve price fixed; trustees and trustees' solicitors appointed; service on missing respondent dispensed with; costs order nisi (no order as to costs)
Legal Topics
Compulsory Sale for Redevelopment, Valuation of Existing Use Value (euv), Lower Percentage Notice Under Section 3(5), Service on Missing Owners, Reasonable Steps to Acquire Shares, Reserve Price and Auction Conditions, Building Safety and Redevelopment Justification
Source Language
EN
Property Law Land Law Administrative/tribunal Procedure Compulsory Sale for Redevelopment Valuation of Existing Use Value (euv) Lower Percentage Notice Under Section 3(5) Service on Missing Owners Reasonable Steps to Acquire Shares +2 more

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Parties

Applicant

Applicant

Respondent (missing)

Respondent

Procedural Posture

Application Under Land (compulsory Sale for Redevelopment) Ordinance, Cap. 545 / Hearing and Determination on Application for Compulsory Sale and Valuation

Legal Issues

  1. 1 Whether applicant met statutory ownership threshold to apply (including effect of s.3(5) Notice)
  2. 2 Whether the Tribunal should determine EUV and whether the assessed EUV for the missing owner is fair and reasonable
  3. 3 Whether redevelopment is justified by age/state of repair

Ratio Decidendi

The Tribunal held the applicant was entitled to apply because the s.3(5) Notice reduced the threshold to 80% and the applicant owned on average 87.5% of the undivided shares in the connected lots; the Savills EUV assessments were accepted as fair and reasonable for the missing owner; expert building and structural evidence established redevelopment was justified; the applicant took reasonable steps to acquire the minority interest; the RDV evidence supported fixing the auction reserve at HK$105,000,000; accordingly an order for compulsory sale by public auction with appointed trustees and solicitors and dispensed service on the missing respondent was made.

Court Disposition

Application granted: order for compulsory sale by public auction; reserve price fixed; trustees and trustees' solicitors appointed; service on missing respondent dispensed with; costs order nisi (no order as to costs)

Orders

  • All undivided shares in Inland Lot Nos. 7513 and 7514 (the Lots) to be sold by public auction for redevelopment pursuant to Cap.545
  • Trustees appointed to conduct sale and authorized to charge remuneration in accordance with appointed solicitors' letters