ORIENTAL GENERATION LTD AND OTHERS v. LUK YUNG AND OTHERS

ORIENTAL GENERATION LTD AND OTHERS v. LUK YUNG AND OTHERS

The Tribunal held applicants satisfied statutory ownership threshold and had taken reasonable steps; accepted Savills' direct-comparison EUV including specific CPS adjustments and accepted agreed RDV of HK$2,293,000,000 reached by valuation experts; rejected inclusion of speculative hope value because the legal chance of removing the lease height restriction at nil premium was not shown to be a reasonable (>50%) prospect; ordered compulsory sale by public auction with reserve price HK$2,293,000,000, appointed trustees and solicitors and made costs order nisi.

Citation
ORIENTAL GENERATION LTD AND OTHERS v. LUK YUNG AND OTHERS
Parties
1st Applicant: Oriental Generation Limited; 2nd Applicant: China Creation Investment Limited; 3rd Applicant: Smart Beauty Limited; 4th Applicant: Wong Wing Wah; Respondent (major CPS Owner): R22 (owner of 82 CPS); Respondent (cps Purchaser): R33; Respondent (cps Purchaser): R34; Respondent (cps Purchaser): R40; Respondent (cps Purchaser): R44; Respondent (unit Owner): R2 (Madam Ip Wai Har); Respondent (unit Owner): R8; Respondent (unit Owner): R9; Respondent (shop Owner): R13; Respondent (unit Owner): R17
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
29 February 2016
Case Number
LDCS4000/2013
Procedural Posture
Land (compulsory Sale for Redevelopment) Application / Judgment at Trial (lands Tribunal)
Outcome
Application granted: compulsory sale ordered by public auction for redevelopment; trustees and trustees' solicitors appointed; reserve price set; sale conditions approved; costs order nisi made
Legal Topics
Compulsory Sale, Redevelopment Justification, Existing Use Value (euv), Redevelopment Value (rdv) / Residual Valuation, Hope Value, Lease Modification and Premium, Expert Evidence and Credibility, Appointment of Trustees, Auction Reserve Price
Source Language
EN
Property Law Administrative Law Planning Law Valuation Law Trusts Compulsory Sale Redevelopment Justification Existing Use Value (euv) +6 more

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Parties

Oriental Generation Limited

1st Applicant

China Creation Investment Limited

2nd Applicant

Smart Beauty Limited

3rd Applicant

Wong Wing Wah

4th Applicant

R22 (owner of 82 CPS)

Respondent (major CPS Owner)

R33

Respondent (cps Purchaser)

R34

Respondent (cps Purchaser)

R40

Respondent (cps Purchaser)

R44

Respondent (cps Purchaser)

R2 (Madam Ip Wai Har)

Respondent (unit Owner)

R8

Respondent (unit Owner)

R9

Respondent (unit Owner)

R13

Respondent (shop Owner)

R17

Respondent (unit Owner)

Procedural Posture

Land (compulsory Sale for Redevelopment) Application / Judgment at Trial (lands Tribunal)

Legal Issues

  1. 1 Whether applicants met statutory ownership threshold (section 3 and s3(5) Notice)
  2. 2 Proper assessment of EUV for domestic units, shops and car parking spaces (CPS)
  3. 3 Whether redevelopment is justified by age/state of repair (section 4(2)(a))

Ratio Decidendi

The Tribunal held applicants satisfied statutory ownership threshold and had taken reasonable steps; accepted Savills' direct-comparison EUV including specific CPS adjustments and accepted agreed RDV of HK$2,293,000,000 reached by valuation experts; rejected inclusion of speculative hope value because the legal chance of removing the lease height restriction at nil premium was not shown to be a reasonable (>50%) prospect; ordered compulsory sale by public auction with reserve price HK$2,293,000,000, appointed trustees and solicitors and made costs order nisi.

Court Disposition

Application granted: compulsory sale ordered by public auction for redevelopment; trustees and trustees' solicitors appointed; reserve price set; sale conditions approved; costs order nisi made

Orders

  • All undivided shares in the Lots to be sold by public auction for redevelopment under section 4(1)(b) of Cap 545
  • Reserve price for the Lots set at HK$2,293,000,000