DREAM BIG DEVELOPMENTS LTD v. LIN MEI HUA

DREAM BIG DEVELOPMENTS LTD v. LIN MEI HUA

The Tribunal granted the compulsory sale because the applicant met the statutory ownership threshold (>90%), established redevelopment was justified by the age and poor state of repair of the buildings, proved it had taken reasonable steps to acquire remaining shares (including making a fair written offer and effecting substituted service on the missing owner), accepted the expert valuation evidence and set the merged-site RDV at HKD183,000,000 as the reserve price, approved sale by single public auction with trustees appointed and directed apportionment of proceeds and expenses by the ratio of the determined market values of properties.

Citation
[2024] HKLdT 75
Parties
Applicant: DREAM BIG DEVELOPMENTS LIMITED; 1st Respondent: LIN MEI HUA (林梅花); 2nd Respondent (discontinued): JOINT SUCCESS LIMITED (合順有限公司); 3rd Respondent (discontinued): CHEN PAOCHEN (陳寶珍); 4th Respondent (discontinued): YANG MAN (楊滿); 5th Respondent (discontinued): YANG HSIUYING (楊繡霙)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
4 September 2024
Case Number
LDCS21000/2022
Procedural Posture
Application Under Land (compulsory Sale for Redevelopment) Ordinance, Cap 545 / Judgment (trial Concluded)
Outcome
Order for sale granted
Legal Topics
Redevelopment Justification, Reasonable Steps to Acquire Shares, Valuation and Reserve Price, Apportionment of Proceeds, Trusteeship and Sale Procedures
Source Language
EN
Land Law Property Law Valuation Law Statutory Compulsory Sale Redevelopment Justification Reasonable Steps to Acquire Shares Valuation and Reserve Price Apportionment of Proceeds +1 more

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Parties

DREAM BIG DEVELOPMENTS LIMITED

Applicant

LIN MEI HUA (林梅花)

1st Respondent

JOINT SUCCESS LIMITED (合順有限公司)

2nd Respondent (discontinued)

CHEN PAOCHEN (陳寶珍)

3rd Respondent (discontinued)

YANG MAN (楊滿)

4th Respondent (discontinued)

YANG HSIUYING (楊繡霙)

5th Respondent (discontinued)

Procedural Posture

Application Under Land (compulsory Sale for Redevelopment) Ordinance, Cap 545 / Judgment (trial Concluded)

Legal Issues

  1. 1 What is the market value of each property in the buildings as at 11 August 2022?
  2. 2 Is redevelopment justified due to age and/or state of repair under section 4(2)(a)?
  3. 3 Has the applicant taken reasonable steps to acquire all undivided shares under section 4(2)(b)?

Ratio Decidendi

The Tribunal granted the compulsory sale because the applicant met the statutory ownership threshold (>90%), established redevelopment was justified by the age and poor state of repair of the buildings, proved it had taken reasonable steps to acquire remaining shares (including making a fair written offer and effecting substituted service on the missing owner), accepted the expert valuation evidence and set the merged-site RDV at HKD183,000,000 as the reserve price, approved sale by single public auction with trustees appointed and directed apportionment of proceeds and expenses by the ratio of the determined market values of properties.

Court Disposition

Order for sale granted

Orders

  • All undivided shares in the Lots to be sold by way of one public auction under one single reserve price for the purposes of redevelopment of the Lots
  • Mr Ma Ho Fai and Ms Kung Ying Chang nominated by the applicant are appointed trustees to discharge duties imposed by the Ordinance in relation to the sale of the Lots and as directed by the Tribunal