NEW MERIT LTD v. THE PERSONAL REPRESENTATIVES OF CHAN KUM KWAN, DECEASED

NEW MERIT LTD v. THE PERSONAL REPRESENTATIVES OF CHAN KUM KWAN, DECEASED

Applicant satisfied statutory ownership threshold (>90%); tribunal accepted expert valuation evidence (EUV total $95,810,000) and residual valuation (RDV $106,000,000) and accepted expert building condition reports establishing redevelopment justified due to age and poor state; applicant had taken reasonable steps...

Source-derived case information.

Citation
[2022] HKLdT 66
Parties
Majority Owner: Applicant; Minority Owner (missing/deceased): Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
7 December 2022
Case Number
LDCS1000/2022
Procedural Posture
Application Under Land (compulsory Sale for Redevelopment) Ordinance / Final Tribunal Judgment
Outcome
Order for sale granted in favour of the applicant
Legal Topics
Compulsory Sale for Redevelopment, Existing Use Value, Redevelopment Value, Reasonable Steps to Acquire Shares, Valuation Methodology, Reserve Price for Auction
Source Language
en
Property Law Land Law Compulsory Sale Valuation Law Compulsory Sale for Redevelopment Existing Use Value Redevelopment Value Reasonable Steps to Acquire Shares +2 more

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Parties

Applicant

Majority Owner

Respondent

Minority Owner (missing/deceased)

Procedural Posture

Application Under Land (compulsory Sale for Redevelopment) Ordinance / Final Tribunal Judgment

Legal Issues

  1. 1 Whether applicant satisfied the ownership threshold under section 3(1) of the Ordinance (minimum 90% of undivided shares)
  2. 2 What was the existing use value (EUV) of all units in the Building as at 31 December 2021
  3. 3 Whether redevelopment of the Lot is justified by age and/or state of repair under section 4(2)(a)

Ratio Decidendi

Applicant satisfied statutory ownership threshold (>90%); tribunal accepted expert valuation evidence (EUV total $95,810,000) and residual valuation (RDV $106,000,000) and accepted expert building condition reports establishing redevelopment justified due to age and poor state; applicant had taken reasonable steps to acquire outstanding share; accordingly an order for sale by public auction with reserve price $106,000,000 was granted and trustees were appointed.

Court Disposition

Order for sale granted in favour of the applicant

Orders

  • All undivided shares in Ap Lei Chau Inland Lot No 80 (Nam Tak Mansion) to be sold by public auction for redevelopment of the Lot
  • Appointment of Mr Anthony W K Chow and Ms Anna S H Chow as trustees to discharge duties under the Ordinance