ABLE LUCK DEVELOPMENT LTD AND OTHERS v. PUBLIC GLOBAL INVESTMETS LTD AND OTHERS

ABLE LUCK DEVELOPMENT LTD AND OTHERS v. PUBLIC GLOBAL INVESTMETS LTD AND OTHERS

The Tribunal was satisfied on evidence (structural and condition surveys and valuations) that redevelopment was justified due to the building's age, obsolescence and poor state of repair and that the applicants had taken reasonable steps to purchase minority shares on terms that were fair and reasonable; accordingly the Tribunal ordered compulsory sale and fixed the reserve price at HKD 1,621,592,000 based on the RDV determined.

Citation
ABLE LUCK DEVELOPMENT LTD AND OTHERS v. PUBLIC GLOBAL INVESTMETS LTD AND OTHERS
Parties
1st Applicant: Able Luck Development Limited; 2nd Applicant: Daily Well Creation Limited; 3rd Applicant: Sky Huge Development Limited; 4th Applicant: Wise Million Limited; 5th Applicant: Fuji Properties Limited; 6th Applicant: Kellex Industries Limited; 7th Applicant: Lam Wai Ying; 8th Applicant: Homford Development Limited; 9th Applicant: Spread Capital Limited; 10th Applicant: Jetfair Enterprises Limited; 1st Respondent: Public Global Investmets Limited; 2nd Respondent: Century Development (HK) Limited (Discontinued); 3rd Respondent: Top Speed International Holdings Limited (Discontinued); 4th Respondent: Jetfair Enterprises Limited (Discontinued); 5th Respondent: Wong Yu Sum; 5th Respondent: Leung Yuet Ming; 6th Respondent: Yat Shun Hong Company Limited; 7th Respondent: Sze Shau Fong; 7th Respondent: Tam Hoi Lam; 8th Respondent: Wong Pak Leung; 8th Respondent: Chin Yuk Ling; 9th Respondent: Treasure Lounge Limited; 10th Respondent: Kok Yick
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
6 October 2017
Case Number
LDCS7000/2014
Procedural Posture
Land (compulsory Sale) Application (cap.545) / Judgment of Lands Tribunal (final Determination and Orders)
Outcome
Order for compulsory sale granted in favour of applicants
Legal Topics
Compulsory Sale for Redevelopment, Statutory Thresholds (s3), Justification for Redevelopment (s4), Reasonable Steps to Acquire Minority Shares, Valuation (euv and Rdv), Reserve Price Setting, Apportionment of Proceeds
Source Language
EN
Property Law Administrative Law Valuation Law Land Redevelopment Compulsory Sale for Redevelopment Statutory Thresholds (s3) Justification for Redevelopment (s4) Reasonable Steps to Acquire Minority Shares +3 more

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Parties

Able Luck Development Limited

1st Applicant

Daily Well Creation Limited

2nd Applicant

Sky Huge Development Limited

3rd Applicant

Wise Million Limited

4th Applicant

Fuji Properties Limited

5th Applicant

Kellex Industries Limited

6th Applicant

Lam Wai Ying

7th Applicant

Homford Development Limited

8th Applicant

Spread Capital Limited

9th Applicant

Jetfair Enterprises Limited

10th Applicant

Public Global Investmets Limited

1st Respondent

Century Development (HK) Limited (Discontinued)

2nd Respondent

Top Speed International Holdings Limited (Discontinued)

3rd Respondent

Jetfair Enterprises Limited (Discontinued)

4th Respondent

Wong Yu Sum

5th Respondent

Leung Yuet Ming

5th Respondent

Yat Shun Hong Company Limited

6th Respondent

Sze Shau Fong

7th Respondent

Tam Hoi Lam

7th Respondent

Wong Pak Leung

8th Respondent

Chin Yuk Ling

8th Respondent

Treasure Lounge Limited

9th Respondent

Kok Yick

10th Respondent

Procedural Posture

Land (compulsory Sale) Application (cap.545) / Judgment of Lands Tribunal (final Determination and Orders)

Legal Issues

  1. 1 Whether redevelopment of the lot is justified by age or state of repair of the building
  2. 2 Whether applicants took reasonable steps to acquire all undivided shares and negotiated on fair and reasonable terms
  3. 3 Determination of existing use value (EUV) and redevelopment value (RDV) and appropriate valuation methodology

Ratio Decidendi

The Tribunal was satisfied on evidence (structural and condition surveys and valuations) that redevelopment was justified due to the building's age, obsolescence and poor state of repair and that the applicants had taken reasonable steps to purchase minority shares on terms that were fair and reasonable; accordingly the Tribunal ordered compulsory sale and fixed the reserve price at HKD 1,621,592,000 based on the RDV determined.

Court Disposition

Order for compulsory sale granted in favour of applicants

Orders

  • All undivided shares in Kun Tong Inland Lot No.3 to be sold by public auction for redevelopment
  • Reserve price for auction set at HKD 1,621,592,000