NICE ABLE HOLDINGS LTD AND ANOTHER v. CHI AH CHIANG AND ANOTHER

NICE ABLE HOLDINGS LTD AND ANOTHER v. CHI AH CHIANG AND ANOTHER

The Tribunal accepted expert evidence that the building (over 58 years old) is in a state of serious disrepair and functionally obsolete, and that repair costs and ongoing deterioration make redevelopment justified; the applicants had taken reasonable steps to acquire remaining shares; the EUV and RDV valuations produced by the applicants' expert were accepted and a sale order by public auction was therefore warranted with the reserve price fixed at HKD190,000,000 and trustees appointed to manage the sale.

Citation
[2021] HKLdT 6
Parties
1st Applicant: NICE ABLE HOLDINGS LIMITED; 2nd Applicant: SUCCESS MARK INVESTMENTS LIMITED; 1st Respondent: CHI AH CHIANG; 2nd Respondent: 2nd Respondent (name not stated)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
26 January 2021
Case Number
LDCS22000/2020
Procedural Posture
Land Compulsory Sale Main Application (cap.545) / Determination and Order for Sale Issued
Outcome
Order for sale granted in favour of the applicants; public auction ordered with reserve price fixed; trustees appointed; costs order nisi (no order as to costs)
Legal Topics
Compulsory Sale for Redevelopment, Redevelopment Justification, Valuation of Existing Use Value and Residual Development Value, Reasonable Steps to Acquire Minority Interests, Appointment of Trustees, Reserve Price for Auction
Source Language
EN
Property Land Law Valuation Building and Construction Civil Procedure Compulsory Sale for Redevelopment Redevelopment Justification Valuation of Existing Use Value and Residual Development Value +3 more

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Parties

NICE ABLE HOLDINGS LIMITED

1st Applicant

SUCCESS MARK INVESTMENTS LIMITED

2nd Applicant

CHI AH CHIANG

1st Respondent

2nd Respondent (name not stated)

2nd Respondent

Procedural Posture

Land Compulsory Sale Main Application (cap.545) / Determination and Order for Sale Issued

Legal Issues

  1. 1 Whether redevelopment of the lot is justified by age or state of repair of the building under s4(2) of Cap.545
  2. 2 Whether the applicants took reasonable steps to acquire all undivided shares in the lot as required by s4(2)(b)
  3. 3 Determination of existing use values (EUV) of units and residual development value (RDV) for reserve price

Ratio Decidendi

The Tribunal accepted expert evidence that the building (over 58 years old) is in a state of serious disrepair and functionally obsolete, and that repair costs and ongoing deterioration make redevelopment justified; the applicants had taken reasonable steps to acquire remaining shares; the EUV and RDV valuations produced by the applicants' expert were accepted and a sale order by public auction was therefore warranted with the reserve price fixed at HKD190,000,000 and trustees appointed to manage the sale.

Court Disposition

Order for sale granted in favour of the applicants; public auction ordered with reserve price fixed; trustees appointed; costs order nisi (no order as to costs)

Orders

  • Tribunal satisfied value of 1st respondent's unit as assessed is fair and reasonable and fair by comparison with applicants' units
  • Tribunal satisfied redevelopment of the Lot is justified due to age and state of repair and that applicants took reasonable steps to acquire all undivided shares