Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

China assets uplift
  • 24 Apr 2013

    CLP POWER HONG KONG LTD v. COMMISSIONER OF RATING AND VALUATION

    Citation
    CLP POWER HONG KONG LTD v. COMMISSIONER OF RATING AND VALUATION
    Court
    Lands Tribunal
    Case number
    LDRA368/2004

    Appeals allowed. The proper valuation method is the R&E method with the tenant's share apportioned by an asset-split using DRC as proxy for market value, with a specific uplift to reflect significant contribution of China assets; the Commissioners WACC approach (tenant's share = WACC x ANFA) is rejected; the contractor's basis is not adopted as an adjunct or cross-check; separate additional awards for tenant's effort and risk are rejected; assets under construction are not rateable and must be excluded; dedicated substations and the identified plant, pipework and cables are rateable under s8…