ABLE WIDE CORPORATION LTD AND OTHERS v. THE INCORPORATED OWNERS OF GOOD YEAR INDUSTRIAL BUILDING AND ANOTHER

ABLE WIDE CORPORATION LTD AND OTHERS v. THE INCORPORATED OWNERS OF GOOD YEAR INDUSTRIAL BUILDING AND ANOTHER

Applicants satisfied statutory 90% ownership requirement; evidence on structural and building defects, obsolescence and repair needs shows the Building has reached or is near end of its economic/design life such that redevelopment is justified under s4(2)(a); revitalisation/wholesale conversion is not a sufficiently certain or higher‑value alternative in multiple ownership and cannot block an order for sale; applicants took reasonable steps to acquire remaining shares under s4(2)(b); Tribunal adopted a residual valuation with developer's profit at 20% and appropriate deductions to fix the market value/reserve price at HKD 1,128,000,000 and granted order for sale.

Citation
[2022] HKLdT 69
Parties
1st Applicant: Able WIDE CORPORation Limited (廣能有限公司); 2nd Applicant: TOP SMART INDUSTRIAL (hk) Limited (高俊實業(香港)有限公司); 3rd Applicant: Able Luck Development Limited (加福發展有限公司); 4th Applicant: SKY HUGE Development Limited (廣天發展有限公司); 5th Applicant: Manway Corporation Limited (文威有限公司); 6th Applicant: High Smart Industrial Limited (領俊實業有限公司); 7th Applicant: JOYSON INTERNATIONAL COMPANY Limited (駿誠國際有限公司); 8th Applicant: CHANDER Development COMPANY Limited (創得發展有限公司); 9th Applicant: NICE EXPRESS Development Limited (益通發展有限公司); 10th Applicant: CHINA BEST Corporation Limited; 1st Respondent (discontinued): BRIGHT CITY INTERNATIONAL Limited (澤城國際有限公司); 2nd Respondent: THE INCORPORATED OWNERS OF GOOD YEAR INDUSTRIAL BUILDING; 3rd Respondent (discontinued): TOPRISE INTERNATIONAL INVESTMENT ENTERPRISE Limited (卓陞國際投資企業有限公司); 4th Respondent: MAKHARIA ALKA
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 December 2022
Case Number
LDCS1000/2020
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance Application (cap 545) / Post‑trial Judgment (order for Sale Made)
Outcome
Order for sale granted by public auction for purposes of redevelopment
Legal Topics
Redevelopment Vs Revitalisation, Existing Use Value (euv), Residual Development Value (rdv), Reasonable Steps to Acquire Minority Shares, Reserve Price for Auction, Statutory Thresholds (s3, S4 Cap 545)
Source Language
EN
Land Law Compulsory Sale Valuation Planning Law Building Regulation and Safety Redevelopment Vs Revitalisation Existing Use Value (euv) Residual Development Value (rdv) +3 more

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Parties

Able WIDE CORPORation Limited (廣能有限公司)

1st Applicant

TOP SMART INDUSTRIAL (hk) Limited (高俊實業(香港)有限公司)

2nd Applicant

Able Luck Development Limited (加福發展有限公司)

3rd Applicant

SKY HUGE Development Limited (廣天發展有限公司)

4th Applicant

Manway Corporation Limited (文威有限公司)

5th Applicant

High Smart Industrial Limited (領俊實業有限公司)

6th Applicant

JOYSON INTERNATIONAL COMPANY Limited (駿誠國際有限公司)

7th Applicant

CHANDER Development COMPANY Limited (創得發展有限公司)

8th Applicant

NICE EXPRESS Development Limited (益通發展有限公司)

9th Applicant

CHINA BEST Corporation Limited

10th Applicant

BRIGHT CITY INTERNATIONAL Limited (澤城國際有限公司)

1st Respondent (discontinued)

THE INCORPORATED OWNERS OF GOOD YEAR INDUSTRIAL BUILDING

2nd Respondent

TOPRISE INTERNATIONAL INVESTMENT ENTERPRISE Limited (卓陞國際投資企業有限公司)

3rd Respondent (discontinued)

MAKHARIA ALKA

4th Respondent

Procedural Posture

Land (compulsory Sale for Redevelopment) Ordinance Application (cap 545) / Post‑trial Judgment (order for Sale Made)

Legal Issues

  1. 1 Whether applicants met the 90% ownership threshold under s3 Cap 545
  2. 2 Whether redevelopment justified by age or state of repair under s4(2)(a)
  3. 3 Whether revitalisation (wholesale conversion) is a viable alternative that bars an order for sale

Ratio Decidendi

Applicants satisfied statutory 90% ownership requirement; evidence on structural and building defects, obsolescence and repair needs shows the Building has reached or is near end of its economic/design life such that redevelopment is justified under s4(2)(a); revitalisation/wholesale conversion is not a sufficiently certain or higher‑value alternative in multiple ownership and cannot block an order for sale; applicants took reasonable steps to acquire remaining shares under s4(2)(b); Tribunal adopted a residual valuation with developer's profit at 20% and appropriate deductions to fix the market value/reserve price at HKD 1,128,000,000 and granted order for sale.

Court Disposition

Order for sale granted by public auction for purposes of redevelopment

Orders

  • All undivided shares in Kun Tong Inland Lot No 1 (Good Year Industrial Building) to be sold by public auction for redevelopment
  • Mr Shum Man Wai and Ms Lo Hoi Ying appointed trustees to discharge duties under the Ordinance