FULLY H.K. INVESTMENTS LTD AND OTHERS v. POON VAI CHING, THE EXECUTRIX OF THE WILL OF POON KAM CHUEN (DECEASED) AND OTHERS

FULLY H.K. INVESTMENTS LTD AND OTHERS v. POON VAI CHING, THE EXECUTRIX OF THE WILL OF POON KAM CHUEN (DECEASED) AND OTHERS

The Tribunal held that offers made by the applicants (including the post-application offer of $42.5m and, alternatively, the highest pre-application offer of $34.925m) fell within the broad range of what may be regarded as fair and reasonable when redevelopment potential is assessed on the lot's own basis under the current OZP (plot ratio 5); redevelopment was justified by the age and state of repair of the building; accordingly an order for sale was justified and made, with the reserve price fixed at $508.89 million and trustees appointed.

Citation
FULLY H.K. INVESTMENTS LTD AND OTHERS v. POON VAI CHING, THE EXECUTRIX OF THE WILL OF POON KAM CHUEN (DECEASED) AND OTHERS
Parties
1st Applicant: FULLY H.K. INVESTMENTS LIMITED; 2nd Applicant: SHARP DRAGON INTERNATIONAL INVESTMENT LIMITED; 3rd Applicant: CHEONG WING HOLDINGS LIMITED; 1st Respondent: POON VAI CHING, THE EXECUTRIX OF THE WILL OF POON KAM CHUEN (DECEASED); 2nd Respondent: POON YIU CHUNG EUGENE; 3rd Respondent: POON MING TAK; 4th Respondent: POON MING KING; 5th Respondent: POON KAI CHUNG KEVIN
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
26 February 2007
Case Number
LDCS3000/2005
Procedural Posture
Land (compulsory Sale for Redevelopment) Application Under Cap. 545 / Judgment Handed Down 26 February 2007
Outcome
Order for sale granted
Legal Topics
Reasonable Steps to Acquire, Redevelopment Justification, Plot Ratio, Reserve Price, Trustees Appointment, Costs
Source Language
EN
Land Law Property Law Compulsory Sale Valuation Law Reasonable Steps to Acquire Redevelopment Justification Plot Ratio Reserve Price +2 more

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Parties

FULLY H.K. INVESTMENTS LIMITED

1st Applicant

SHARP DRAGON INTERNATIONAL INVESTMENT LIMITED

2nd Applicant

CHEONG WING HOLDINGS LIMITED

3rd Applicant

POON VAI CHING, THE EXECUTRIX OF THE WILL OF POON KAM CHUEN (DECEASED)

1st Respondent

POON YIU CHUNG EUGENE

2nd Respondent

POON MING TAK

3rd Respondent

POON MING KING

4th Respondent

POON KAI CHUNG KEVIN

5th Respondent

Procedural Posture

Land (compulsory Sale for Redevelopment) Application Under Cap. 545 / Judgment Handed Down 26 February 2007

Legal Issues

  1. 1 Whether majority owners took reasonable steps to acquire all undivided shares including whether offers were fair and reasonable
  2. 2 Whether redevelopment of the lot is justified under s.4(2)(a) having regard to age and state of repair
  3. 3 Whether valuation must take into account an existing approved plan allowing Plot Ratio 9 owned by a third party potentially related to applicants

Ratio Decidendi

The Tribunal held that offers made by the applicants (including the post-application offer of $42.5m and, alternatively, the highest pre-application offer of $34.925m) fell within the broad range of what may be regarded as fair and reasonable when redevelopment potential is assessed on the lot's own basis under the current OZP (plot ratio 5); redevelopment was justified by the age and state of repair of the building; accordingly an order for sale was justified and made, with the reserve price fixed at $508.89 million and trustees appointed.

Court Disposition

Order for sale granted

Orders

  • All undivided shares in the lot to be sold for purposes of redevelopment of the lot.
  • Mr. Ma Ho Fai and Ms. Tsang May Ping appointed as trustees for the sale and authorized to charge remuneration in accordance with the letter of Messrs. Woo, Kwan, Lee and Lo dated 7 July 2006.