30 Nov 2009
THE HONG KONG ELECTRIC CO LTD v. COMMISSIONER OF RATING AND VALUATION
- Citation
- THE HONG KONG ELECTRIC CO LTD v. COMMISSIONER OF RATING AND VALUATION
- Court
- Lands Tribunal
- Case number
- LDRA358/2004
The appeals are allowed: the proper valuation method is the Receipts & Expenditure method with the hypothetical Scheme of Control assumed; the tenant's share is to be computed by reference to the SOC permitted return applied to the tenant's Average Net Fixed Assets (PR×HT ANFA) (subject to agreed depreciation adjustments and an adjustment excluding non-rateable AUC). Assets under construction are not rateable as a matter of law. The Contractor's Basis is inappropriate to capture the Tenement's monopoly and synergy value, and WACC is not adopted as the primary measure of the tenant's share in…