Strawberry Hill Development Ltd. v. Bank Austria Creditanstalt International AG.

Strawberry Hill Development Ltd. v. Bank Austria Creditanstalt International AG.

The Tribunal rejected House 29 as an outlier, accepted the comparables House 25, House 37, House 23 and House 11 and adopted Mr. Cullen's total adjustments (with Tribunal refinements including treating ancillary area as one‑tenth of house area and a $2,500 carpark adjustment for House 23), calculated an average adjusted unit rate of $380.90 per sq.m., applied it to the subject saleable area 301.9 sq.m. and assessed the prevailing market rent at $115,000 per month; the Tribunal also allowed a tenant break clause exercisable after at least one year on two months' written notice.

Citation
Strawberry Hill Development Ltd. v. Bank Austria Creditanstalt International AG.
Parties
Applicant (tenant): Bank Austria Creditanstalt International AG.; Respondent (landlord): Strawberry Hill Development Ltd.
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
5 July 2000
Case Number
LDNT48/2000
Procedural Posture
Part IV Application Under the Landlord and Tenant (consolidation) Ordinance, Cap. 7 / Judgment
Outcome
Application allowed in part: new two‑year tenancy granted with rent fixed at $115,000 per month and a tenant break clause exercisable after one year on two months' notice.
Legal Topics
Market Rent Determination, Comparables, Break Clause, Tenancy Renewal
Source Language
EN
Landlord and Tenant Property Valuation Real Property Market Rent Determination Comparables Break Clause Tenancy Renewal

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Parties

Bank Austria Creditanstalt International AG.

Applicant (tenant)

Strawberry Hill Development Ltd.

Respondent (landlord)

Procedural Posture

Part IV Application Under the Landlord and Tenant (consolidation) Ordinance, Cap. 7 / Judgment

Legal Issues

  1. 1 What was the prevailing market rent of the subject premises as at 20 March 2000?
  2. 2 Which comparable lettings are admissible and how should adjustments be made?
  3. 3 Whether a tenant break clause should be included and on what terms?

Ratio Decidendi

The Tribunal rejected House 29 as an outlier, accepted the comparables House 25, House 37, House 23 and House 11 and adopted Mr. Cullen's total adjustments (with Tribunal refinements including treating ancillary area as one‑tenth of house area and a $2,500 carpark adjustment for House 23), calculated an average adjusted unit rate of $380.90 per sq.m., applied it to the subject saleable area 301.9 sq.m. and assessed the prevailing market rent at $115,000 per month; the Tribunal also allowed a tenant break clause exercisable after at least one year on two months' written notice.

Court Disposition

Application allowed in part: new two‑year tenancy granted with rent fixed at $115,000 per month and a tenant break clause exercisable after one year on two months' notice.

Orders

  • New tenancy for two years from 21 March 2000.
  • New rent $115,000 per month (exclusive of rates and management charges).