NICE BEAUTY LTD v. YAN YAN MOTORS LTD AND OTHERS

NICE BEAUTY LTD v. YAN YAN MOTORS LTD AND OTHERS

The tribunal concluded the applicant satisfied the ownership threshold (average >80% under the Specification Notice), redevelopment was justified on grounds of age and poor state of repair (extensive carbonation/corrosion, functional and physical obsolescence, repair ineffective or disproportionate), the applicant had taken reasonable steps to acquire remaining shares with offers falling within a fair and reasonable band, and accepted the experts' residual valuation giving an RDV/reserve price of HKD 812,300,000; accordingly an order for sale by public auction was made and trustees appointed.

Citation
[2021] HKLdT 77
Parties
Applicant: NICE BEAUTY LIMITED; 1st Respondent: YAN YAN MOTORS LIMITED; 2nd Respondent: SHING FUNG FINANCE COMPANY LIMITED; 3rd Respondent: CHEONG HING HING (vava); 4th Respondents: (unnamed) 4th Respondents; 5th Respondent: (unnamed) 5th Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
6 December 2021
Case Number
LDCS14000/2019
Procedural Posture
Compulsory Sale for Redevelopment (land (compulsory Sale for Redevelopment) Ordinance) / Final Judgment (lands Tribunal)
Outcome
Order for sale granted under the Land (Compulsory Sale for Redevelopment) Ordinance
Legal Topics
Ownership Threshold Under Section 3, Justification for Redevelopment Under Section 4(2), Reasonable Steps to Acquire Minority Shares, Existing Use Value (euv) Valuation, Redevelopment Value (rdv) and Reserve Price, Structural Condition and Repair Cost Analysis, Appointment of Trustees, Costs Order
Source Language
EN
Property Law Compulsory Sale Valuation Law Building and Construction Law Administrative Law Ownership Threshold Under Section 3 Justification for Redevelopment Under Section 4(2) Reasonable Steps to Acquire Minority Shares +5 more

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Parties

NICE BEAUTY LIMITED

Applicant

YAN YAN MOTORS LIMITED

1st Respondent

SHING FUNG FINANCE COMPANY LIMITED

2nd Respondent

CHEONG HING HING (vava)

3rd Respondent

(unnamed) 4th Respondents

4th Respondents

(unnamed) 5th Respondent

5th Respondent

Procedural Posture

Compulsory Sale for Redevelopment (land (compulsory Sale for Redevelopment) Ordinance) / Final Judgment (lands Tribunal)

Legal Issues

  1. 1 Whether applicant met the statutory ownership threshold under section 3 as varied by the Specification Notice
  2. 2 Whether redevelopment of the Lots is justified by the age and/or state of repair of the Building under section 4(2)(a)
  3. 3 Whether the applicant took reasonable steps to acquire all undivided shares on fair and reasonable terms under section 4(2)(b)

Ratio Decidendi

The tribunal concluded the applicant satisfied the ownership threshold (average >80% under the Specification Notice), redevelopment was justified on grounds of age and poor state of repair (extensive carbonation/corrosion, functional and physical obsolescence, repair ineffective or disproportionate), the applicant had taken reasonable steps to acquire remaining shares with offers falling within a fair and reasonable band, and accepted the experts' residual valuation giving an RDV/reserve price of HKD 812,300,000; accordingly an order for sale by public auction was made and trustees appointed.

Court Disposition

Order for sale granted under the Land (Compulsory Sale for Redevelopment) Ordinance

Orders

  • All undivided shares in the Lots to be sold by public auction for redevelopment of the Lots
  • Mr Norman Chui and Mr Stephen Lau nominated by the applicant appointed as trustees to discharge duties under the Ordinance