EASE KIND DEVELOPMENT LTD v. HSBC PRIVATE TRUSTEE AND OTHERS

EASE KIND DEVELOPMENT LTD v. HSBC PRIVATE TRUSTEE AND OTHERS

On the unchallenged expert evidence the buildings on the subject lots had exceeded their design working life, suffered material structural and safety defects and required unaffordable repairs; the applicant demonstrated it had taken reasonable steps to acquire remaining undivided shares (including a commercial agreement with the trustee party despite need for High Court authorization), the EUVs in the application report were adopted and the auction reserve price of HK$74,800,000 was reasonable — accordingly the statutory conditions for a compulsory sale order under Cap.545 were satisfied and an order for sale was made with trustees appointed.

Citation
EASE KIND DEVELOPMENT LTD v. HSBC PRIVATE TRUSTEE AND OTHERS
Parties
Applicant: EASE KIND DEVELOPMENT LIMITED; 1st Respondent: HSBC PRIVATE TRUSTEE (HONG KONG) LIMITED (formerly Standard Chartered Bank Hong Kong Trustee Limited, Standard Chartered Equitor Trustee HK Limited and Bermuda Trust (Hong Kong) Limited); 2nd Respondents: LAI KAM HAR and LAI KAM LING JESSICA; 3rd Respondent: Madam CHAN HO
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
31 August 2010
Case Number
LDCS7000/2009
Procedural Posture
Compulsory Sale Application Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Hearing Concluded; Reasons for Judgment and Order for Sale Made (25–31 August 2010)
Outcome
Order for compulsory sale granted
Legal Topics
Compulsory Sale, Redevelopment Justification, Existing Use Value (euv) Valuation, Auction Reserve Price, Reasonable Steps to Acquire Undivided Shares
Source Language
EN
Property Law Land Law Trusts Civil Procedure Valuation Compulsory Sale Redevelopment Justification Existing Use Value (euv) Valuation +2 more

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Parties

EASE KIND DEVELOPMENT LIMITED

Applicant

HSBC PRIVATE TRUSTEE (HONG KONG) LIMITED (formerly Standard Chartered Bank Hong Kong Trustee Limited, Standard Chartered Equitor Trustee HK Limited and Bermuda Trust (Hong Kong) Limited)

1st Respondent

LAI KAM HAR and LAI KAM LING JESSICA

2nd Respondents

Madam CHAN HO

3rd Respondent

Procedural Posture

Compulsory Sale Application Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Hearing Concluded; Reasons for Judgment and Order for Sale Made (25–31 August 2010)

Legal Issues

  1. 1 Whether redevelopment of the subject lots is justified due to age or state of repair of existing buildings
  2. 2 Whether the applicant has taken reasonable steps to acquire all undivided shares in the subject lots
  3. 3 Determination and adoption of existing use values and setting of auction reserve price

Ratio Decidendi

On the unchallenged expert evidence the buildings on the subject lots had exceeded their design working life, suffered material structural and safety defects and required unaffordable repairs; the applicant demonstrated it had taken reasonable steps to acquire remaining undivided shares (including a commercial agreement with the trustee party despite need for High Court authorization), the EUVs in the application report were adopted and the auction reserve price of HK$74,800,000 was reasonable — accordingly the statutory conditions for a compulsory sale order under Cap.545 were satisfied and an order for sale was made with trustees appointed.

Court Disposition

Order for compulsory sale granted

Orders

  • Tribunal satisfied redevelopment justified due to age and state of repair and applicant had taken reasonable steps to acquire undivided shares
  • All undivided shares of the 1st and 2nd Lots to be sold by public auction for redevelopment under Cap.545 s.4(1)(b)