EVERSOUND INVESTMENTS LTD v. WONG HIU MAN AND OTHERS

EVERSOUND INVESTMENTS LTD v. WONG HIU MAN AND OTHERS

Applicant satisfied statutory ownership threshold under the s3(5) Notice (80% threshold); Tribunal accepted expert valuation using permitted use (scenario 1) for EUVs; expert building and structural evidence established redevelopment is justified by age and defects and repair costs; Applicant took reasonable steps to acquire remaining shares; accordingly an order for compulsory sale was warranted, reserve price fixed at HK$83,500,000, trustees appointed and sale particulars approved.

Citation
EVERSOUND INVESTMENTS LTD v. WONG HIU MAN AND OTHERS
Parties
Applicant: EVERSOUND INVESTMENTS LIMITED; 1st Respondent (discontinued): WONG HIU MAN (黃曉敏); 2nd Respondent (discontinued): HUI SHUI YIN (許瑞賢), The Administrator of The Estate of KWONG PING (Deceased); 3rd Respondents (discontinued): CHENG WING YIN (鄭永賢) and The Official Receiver, The Trustee of The Estate of LAM HON WING (林漢榮); 4th Respondent (discontinued): CHAN SHEUNG LUNG (陳尚龍); 5th Respondents (discontinued): CHENG TUNG PING (鄭東平) and CHENG HOI PING (鄭海平); 6th Respondent (discontinued): WONG YAN RACHEL (黃恩); 7th Respondents (discontinued): WAN WAI MUN (溫慧文), CHUNG MING FAI (鍾明輝) and CHUNG CHING MAN (鍾正文); 8th Respondents (absent): 8th Respondents
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
15 August 2013
Case Number
LDCS10000/2012
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment Following Trial on 18 19 July 2013
Outcome
Order for compulsory sale granted
Legal Topics
Redevelopment, Statutory Ownership Threshold (s3), Specification of Lower Percentage Notice, Existing Use Value Vs Permitted Use, Reasonable Steps to Acquire Minority Interests, Reserve Price and Auction Trustees
Source Language
EN
Property Law Land Law Compulsory Purchase/compulsory Sale Valuation Law Building and Construction Law Redevelopment Statutory Ownership Threshold (s3) Specification of Lower Percentage Notice +3 more

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Parties

EVERSOUND INVESTMENTS LIMITED

Applicant

WONG HIU MAN (黃曉敏)

1st Respondent (discontinued)

HUI SHUI YIN (許瑞賢), The Administrator of The Estate of KWONG PING (Deceased)

2nd Respondent (discontinued)

CHENG WING YIN (鄭永賢) and The Official Receiver, The Trustee of The Estate of LAM HON WING (林漢榮)

3rd Respondents (discontinued)

CHAN SHEUNG LUNG (陳尚龍)

4th Respondent (discontinued)

CHENG TUNG PING (鄭東平) and CHENG HOI PING (鄭海平)

5th Respondents (discontinued)

WONG YAN RACHEL (黃恩)

6th Respondent (discontinued)

WAN WAI MUN (溫慧文), CHUNG MING FAI (鍾明輝) and CHUNG CHING MAN (鍾正文)

7th Respondents (discontinued)

8th Respondents

8th Respondents (absent)

Procedural Posture

Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment Following Trial on 18 19 July 2013

Legal Issues

  1. 1 Whether the applicant met the statutory ownership threshold permitting application under the Ordinance (including application of the s3(5) Notice lowering threshold)
  2. 2 Whether the existing use values (EUVs) should be assessed on lawful permitted use or on actual existing use for valuation and apportionment
  3. 3 Whether redevelopment is justified by age and state of repair of the building

Ratio Decidendi

Applicant satisfied statutory ownership threshold under the s3(5) Notice (80% threshold); Tribunal accepted expert valuation using permitted use (scenario 1) for EUVs; expert building and structural evidence established redevelopment is justified by age and defects and repair costs; Applicant took reasonable steps to acquire remaining shares; accordingly an order for compulsory sale was warranted, reserve price fixed at HK$83,500,000, trustees appointed and sale particulars approved.

Court Disposition

Order for compulsory sale granted

Orders

  • All undivided shares in Sub‑section 5 of Section D of Kowloon Marine Lot No. 52 (the Lot) to be sold for redevelopment pursuant to the Ordinance
  • Reserve price for the public auction fixed at HK$83,500,000