CHARMLINK LTD v. LEE TONG HING AND OTHERS

CHARMLINK LTD v. LEE TONG HING AND OTHERS

The Tribunal will grant a compulsory sale order where the majority owner meets the statutory ownership threshold, the assessed EUV of any missing minority interest is fair and reasonable (including comparison with majority owner's EUV), the building's age or state of repair justifies redevelopment, and the applicant has taken reasonable steps to acquire remaining interests; applying those principles the Tribunal found the Applicant satisfied the statutory requirements, assessed the missing half‑share interest at HK$3,235,000, accepted redevelopment was justified, and ordered sale by public auction with trustees appointed and a reserve price of HK$666,000,000.

Citation
CHARMLINK LTD v. LEE TONG HING AND OTHERS
Parties
Applicant: Charmlink Limited; 1st Respondent: Lee Tong Hing; 2nd Respondent: Su Sien Shuh; 3rd Respondent: Wong Kwong Shing; 4th Respondent: Wong Cheong Shing Tong Limited; 5th Respondent: Wong Shin Ling; 6th Respondent: Ng Tze Ping and Wu Zi Wei
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
29 November 2011
Case Number
LDCS16000/2010
Procedural Posture
Land Compulsory Sale Application No. 16000 of 2010 (land (compulsory Sale for Redevelopment) Ordinance) / Judgment Delivered 29 November 2011
Outcome
Compulsory sale order granted and orders made as detailed
Legal Topics
Redevelopment Justification, Existing Use Value (euv), Reserve Price and Residual Valuation, Reasonable Steps to Acquire Minority Interest, Appointment of Trustees, Auction Sale Conditions
Source Language
EN
Land Law Property Law Compulsory Sale Valuation Law Redevelopment Justification Existing Use Value (euv) Reserve Price and Residual Valuation Reasonable Steps to Acquire Minority Interest +2 more

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Parties

Charmlink Limited

Applicant

Lee Tong Hing

1st Respondent

Su Sien Shuh

2nd Respondent

Wong Kwong Shing

3rd Respondent

Wong Cheong Shing Tong Limited

4th Respondent

Wong Shin Ling

5th Respondent

Ng Tze Ping and Wu Zi Wei

6th Respondent

Procedural Posture

Land Compulsory Sale Application No. 16000 of 2010 (land (compulsory Sale for Redevelopment) Ordinance) / Judgment Delivered 29 November 2011

Legal Issues

  1. 1 Whether Applicant met statutory ownership threshold to bring application
  2. 2 Whether the EUV assessed for the missing minority owner is fair and reasonable and comparable to majority owner
  3. 3 Whether redevelopment is justified by age and/or state of repair of the building

Ratio Decidendi

The Tribunal will grant a compulsory sale order where the majority owner meets the statutory ownership threshold, the assessed EUV of any missing minority interest is fair and reasonable (including comparison with majority owner's EUV), the building's age or state of repair justifies redevelopment, and the applicant has taken reasonable steps to acquire remaining interests; applying those principles the Tribunal found the Applicant satisfied the statutory requirements, assessed the missing half‑share interest at HK$3,235,000, accepted redevelopment was justified, and ordered sale by public auction with trustees appointed and a reserve price of HK$666,000,000.

Court Disposition

Compulsory sale order granted and orders made as detailed

Orders

  • All undivided shares in Kowloon Inland Lot No. 2079 to be sold by public auction for redevelopment of the Lot
  • Mr. Ma Ho Fai and Ms. Tsang May Ping appointed as trustees to discharge duties under the Ordinance and authorized to charge remuneration in accordance with the letter dated 19 September 2011