EVERSOUND INVESTMENTS LTD v. LEUNG KWOK NUN AND OTHERS

EVERSOUND INVESTMENTS LTD v. LEUNG KWOK NUN AND OTHERS

The Tribunal accepted the applicant's expert EUV and RDV valuations (adopting scenario 1 domestic use for ground floor), found the building to be over 53 years old with severe structural and non-structural defects making redevelopment justified and repairs economically unjustifiable, found the applicant had taken...

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Citation
EVERSOUND INVESTMENTS LTD v. LEUNG KWOK NUN AND OTHERS
Parties
Applicant (majority Owner): Eversound Investments Limited; 1st Respondent (discontinued): Leung Kwok Nun (personal representative of estate of Leung Wing Lai); 2nd Respondent (discontinued): Lor Chan Sum; 3rd Respondent (minority Owner; Personal Representative): Personal Representative of the estate of Cheng Tin (also known as Cheng Tim); 4th Respondent (minority Owner; Personal Representative): Personal Representative of the estate of Cheung Chiu; 5th Respondent (registered Owner of 7/f No.18 Wan Shun Street; Minority Owner): Tse Chi Kwong (alias Tse Kwong); 6th Respondent (registered Owner of Flat B 7/f No.17 Wan King Street; Withdrew Opposition): Wang Yan Rachel (黃恩); 7th Respondents (registered Owner of Roof; Minority Owners): Chung Ming Fai and Chung Ching Man
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
29 August 2013
Case Number
LDCS32000/2012
Procedural Posture
Compulsory Sale for Redevelopment Under Land (compulsory Sale for Redevelopment) Ordinance, Cap.545 / Final Judgment (order for Sale)
Outcome
Order for compulsory sale granted
Legal Topics
Compulsory Sale, Redevelopment Justification, Existing Use Value (euv) Valuation, Reasonable Steps to Acquire Minority Shares, Reserve Price Fixation, Trustee Appointment, Dispensing With Service
Source Language
en
Property Law Land Law Valuation Law Administrative/tribunal Procedure Building and Construction Law Compulsory Sale Redevelopment Justification Existing Use Value (euv) Valuation +4 more

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Parties

Eversound Investments Limited

Applicant (majority Owner)

Leung Kwok Nun (personal representative of estate of Leung Wing Lai)

1st Respondent (discontinued)

Lor Chan Sum

2nd Respondent (discontinued)

Personal Representative of the estate of Cheng Tin (also known as Cheng Tim)

3rd Respondent (minority Owner; Personal Representative)

Personal Representative of the estate of Cheung Chiu

4th Respondent (minority Owner; Personal Representative)

Tse Chi Kwong (alias Tse Kwong)

5th Respondent (registered Owner of 7/f No.18 Wan Shun Street; Minority Owner)

Wang Yan Rachel (黃恩)

6th Respondent (registered Owner of Flat B 7/f No.17 Wan King Street; Withdrew Opposition)

Chung Ming Fai and Chung Ching Man

7th Respondents (registered Owner of Roof; Minority Owners)

Procedural Posture

Compulsory Sale for Redevelopment Under Land (compulsory Sale for Redevelopment) Ordinance, Cap.545 / Final Judgment (order for Sale)

Legal Issues

  1. 1 Determination of existing use values (EUV) of units
  2. 2 Whether redevelopment is justified by age and state of repair
  3. 3 Whether applicant took reasonable steps to acquire remaining undivided shares

Ratio Decidendi

The Tribunal accepted the applicant's expert EUV and RDV valuations (adopting scenario 1 domestic use for ground floor), found the building to be over 53 years old with severe structural and non-structural defects making redevelopment justified and repairs economically unjustifiable, found the applicant had taken reasonable steps to acquire remaining shares by making multiple offers above expert valuation, and therefore granted an order for compulsory sale with reserve price fixed at HK$78.10 million and appointed trustees to conduct the sale.

Court Disposition

Order for compulsory sale granted

Orders

  • All undivided shares in Remaining Portion of Kowloon Marine Lot No.52 to be sold by public auction for redevelopment
  • Reserve price for the auction fixed at HK$78,100,000