MANY GAIN INVESTMENT LTD v. ALL LUCKY DEVELOPMENT LTD

MANY GAIN INVESTMENT LTD v. ALL LUCKY DEVELOPMENT LTD

The Tribunal found the applicant met the statutory ownership threshold by operation of the S.3(5) Notice lowering the threshold to 80% and, on the evidence of the applicant's expert valuers and building experts, accepted the EUV and RDV assessments, concluded redevelopment was justified by age and poor condition, that reasonable steps had been taken to acquire remaining shares, fixed the reserve price at HK$135,000,000, and ordered compulsory sale with appointment of nominated trustees and approval of sale particulars.

Citation
MANY GAIN INVESTMENT LTD v. ALL LUCKY DEVELOPMENT LTD
Parties
2nd Respondents (discontinued): Chan Ka Lai and Chan Ka Bo; 3rd Respondent (discontinued): Tsui Hing Yin; 4th Respondent: All Lucky Development Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
18 June 2014
Case Number
LDCS28000/2012
Procedural Posture
Compulsory Sale Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Judgment (hearing 2 June 2014; Judgment 18 June 2014)
Outcome
Order for compulsory sale of all undivided shares in Kowloon Inland Lot No.10005 and No.9987 (the Lots) by public auction for redevelopment; trustees appointed; reserve price fixed; sale particulars approved; redevelopment completion period imposed; costs order nisi
Legal Topics
Compulsory Sale, Redevelopment Justification, Valuation (existing Use Value and Residual Development Value), Ownership Threshold Under Statutory Notice, Reasonable Steps to Acquire Minority Interest, Appointment of Trustees, Reserve Price for Auction, Occupation Permit and Change of Use
Source Language
EN
Property Land Law Administrative Law Building Regulation Enforcement Valuation Law Compulsory Sale Redevelopment Justification Valuation (existing Use Value and Residual Development Value) +5 more

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Parties

Chan Ka Lai and Chan Ka Bo

2nd Respondents (discontinued)

Tsui Hing Yin

3rd Respondent (discontinued)

All Lucky Development Limited

4th Respondent

Procedural Posture

Compulsory Sale Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Judgment (hearing 2 June 2014; Judgment 18 June 2014)

Legal Issues

  1. 1 Whether applicant met statutory ownership threshold to apply (s.3 Cap.545) under the lower percentage Notice
  2. 2 Whether Tribunal should determine existing use values (EUV) of all units and accept applicant's valuation methodology
  3. 3 Whether redevelopment is justified by age and state of repair of the Building

Ratio Decidendi

The Tribunal found the applicant met the statutory ownership threshold by operation of the S.3(5) Notice lowering the threshold to 80% and, on the evidence of the applicant's expert valuers and building experts, accepted the EUV and RDV assessments, concluded redevelopment was justified by age and poor condition, that reasonable steps had been taken to acquire remaining shares, fixed the reserve price at HK$135,000,000, and ordered compulsory sale with appointment of nominated trustees and approval of sale particulars.

Court Disposition

Order for compulsory sale of all undivided shares in Kowloon Inland Lot No.10005 and No.9987 (the Lots) by public auction for redevelopment; trustees appointed; reserve price fixed; sale particulars approved; redevelopment completion period imposed; costs order nisi

Orders

  • All undivided shares in the Lots be sold by public auction for purposes of redevelopment
  • Mr Anthony Chow and Ms Anna Chow of Messrs Peter C Wong, Chow & Chow & Co be appointed trustees with authority to appoint independent legal advisor Messrs Michael Cheuk, Wong & Kee and to charge remuneration as per letter dated 19 May 2014