WISDOM GAINING LTD v. WISDOM LIGHT INDUSTRIAL LIMITED AND OTHERS

WISDOM GAINING LTD v. WISDOM LIGHT INDUSTRIAL LIMITED AND OTHERS

The Tribunal concluded (1) the Ordinance is not shown to contravene the Basic Law on the material before it; (2) redevelopment of the Lot is justified on the evidence of structural and building surveys; (3) the Tribunal adopts the EUV figures derived from the credible experts (adopting Ms Sat's adjusted unit rates for shops and domestic units) giving a total EUV of HKD 73,330,000 with R1's EUV HKD 23,360,000 (31.856%) and R3's EUV HKD 2,080,000 (2.836%); (4) in assessing whether reasonable steps were taken under s4(2)(b) the Tribunal may consider all offers up to determination including post‑application offers and, on the evidence, the offers made were within the band of fair and...

Citation
WISDOM GAINING LTD v. WISDOM LIGHT INDUSTRIAL LIMITED AND OTHERS
Parties
Applicant: Wisdom Gaining Limited; 1st Respondent: Wisdom Light Industrial Limited; 2nd Respondent (discontinued): Hou Hin Limited; 3rd Respondent: CW Brothers Nominees Pty Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
3 June 2014
Case Number
LDCS23000/2012
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment (lands Tribunal)
Outcome
Compulsory sale order made; Lot ordered sold by public auction for redevelopment; reserve price fixed; sale trustees appointed; costs order nisi (no order as to costs)
Legal Topics
Existing Use Value (euv), Redevelopment Value (rdv), Reasonable Steps to Acquire Minority Shares, Basic Law Compliance (arts 6 and 105), Reserve Price and Auction Procedure, Expert Witness Evaluation
Source Language
EN
Land Law Property Valuation Compulsory Purchase/compulsory Sale Administrative Law Constitutional Law Existing Use Value (euv) Redevelopment Value (rdv) Reasonable Steps to Acquire Minority Shares +3 more

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Parties

Wisdom Gaining Limited

Applicant

Wisdom Light Industrial Limited

1st Respondent

Hou Hin Limited

2nd Respondent (discontinued)

CW Brothers Nominees Pty Limited

3rd Respondent

Procedural Posture

Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment (lands Tribunal)

Legal Issues

  1. 1 Whether the Ordinance is consistent with the Basic Law (Arts 6 and 105)
  2. 2 What is the correct existing use value (EUV) of each unit
  3. 3 Whether redevelopment of the Lot is justified by age/state of repair

Ratio Decidendi

The Tribunal concluded (1) the Ordinance is not shown to contravene the Basic Law on the material before it; (2) redevelopment of the Lot is justified on the evidence of structural and building surveys; (3) the Tribunal adopts the EUV figures derived from the credible experts (adopting Ms Sat's adjusted unit rates for shops and domestic units) giving a total EUV of HKD 73,330,000 with R1's EUV HKD 23,360,000 (31.856%) and R3's EUV HKD 2,080,000 (2.836%); (4) in assessing whether reasonable steps were taken under s4(2)(b) the Tribunal may consider all offers up to determination including post‑application offers and, on the evidence, the offers made were within the band of fair and...

Court Disposition

Compulsory sale order made; Lot ordered sold by public auction for redevelopment; reserve price fixed; sale trustees appointed; costs order nisi (no order as to costs)

Orders

  • Order that all undivided shares in the Lot be sold by public auction for the purposes of redevelopment
  • Reserve price for the Lot fixed at HKD 118400000