DAY BRIGHT DEVELOPMENT LTD AND OTHERS v.THE PERSONAL REPRESENTATIVES OF WONGBING (DECEASED）AND OTHERS

DAY BRIGHT DEVELOPMENT LTD AND OTHERS v.THE PERSONAL REPRESENTATIVES OF WONGBING (DECEASED）AND OTHERS

Applicants met the statutory ownership threshold (applicable reduced threshold 80%), credible expert evidence established the Building is aged and in a state beyond reasonable economic repair so redevelopment is justified, the EUV and RDV valuations by Savills were accepted as fair and reasonable and the applicants had taken reasonable steps to acquire outstanding shares; therefore an order for compulsory sale by public auction with reserve price HK$163,000,000 and appointment of the proposed trustees was justified.

Citation
DAY BRIGHT DEVELOPMENT LTD AND OTHERS v.THE PERSONAL REPRESENTATIVES OF WONGBING (DECEASED）AND OTHERS
Parties
1st Applicant: Day Bright Development Limited; 2nd Applicant: Full Asset Enterprises Limited; 3rd Applicant: Reach High Development Limited; 1st Respondent: The Personal Representatives of WONG BING (Deceased); 2nd Respondent: HO PO CHEN; 3rd Respondent (discontinued): LIU WAI MAN now known as LIU HIU NAM VIKKI; 4th Respondent: LUI KWAI KWAN; 5th Respondent (discontinued): GOD WING FOOK; 6th Respondent (discontinued): LIU WAI KEUNG; 7th Respondent: LUI MAN KAM, Administrator of the Estate of CHOW CHOI CHI (Deceased); 8th Respondent (discontinued): CITIBANK, N.A.; 9th Respondent: LUI MAN KAM
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
6 September 2013
Case Number
LDCS16000/2012
Procedural Posture
Land Compulsory Sale Application (cap.545) / Judgment
Outcome
Order for compulsory sale by public auction for redevelopment
Legal Topics
Redevelopment, Existing Use Value (euv), Reserve Price Assessment, Reasonable Steps to Acquire Minority Shares, Statutory Threshold for Compulsory Sale, Appointment of Sale Trustees, Auction Particulars
Source Language
EN
Property Law Compulsory Sale Valuation Building and Construction Law Trusts and Trustees Redevelopment Existing Use Value (euv) Reserve Price Assessment +4 more

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Parties

Day Bright Development Limited

1st Applicant

Full Asset Enterprises Limited

2nd Applicant

Reach High Development Limited

3rd Applicant

The Personal Representatives of WONG BING (Deceased)

1st Respondent

HO PO CHEN

2nd Respondent

LIU WAI MAN now known as LIU HIU NAM VIKKI

3rd Respondent (discontinued)

LUI KWAI KWAN

4th Respondent

GOD WING FOOK

5th Respondent (discontinued)

LIU WAI KEUNG

6th Respondent (discontinued)

LUI MAN KAM, Administrator of the Estate of CHOW CHOI CHI (Deceased)

7th Respondent

CITIBANK, N.A.

8th Respondent (discontinued)

LUI MAN KAM

9th Respondent

Procedural Posture

Land Compulsory Sale Application (cap.545) / Judgment

Legal Issues

  1. 1 Whether applicants satisfied statutory ownership threshold for compulsory sale
  2. 2 Whether EUV assessments of units are fair and reasonable
  3. 3 Whether redevelopment is justified by age and state of repair

Ratio Decidendi

Applicants met the statutory ownership threshold (applicable reduced threshold 80%), credible expert evidence established the Building is aged and in a state beyond reasonable economic repair so redevelopment is justified, the EUV and RDV valuations by Savills were accepted as fair and reasonable and the applicants had taken reasonable steps to acquire outstanding shares; therefore an order for compulsory sale by public auction with reserve price HK$163,000,000 and appointment of the proposed trustees was justified.

Court Disposition

Order for compulsory sale by public auction for redevelopment

Orders

  • All undivided shares in the Lot to be sold by public auction for purposes of redevelopment
  • Reserve price for auction fixed at HK$163,000,000