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
- LDGA224/2004
The Tribunal held that the R&E method is the primary valuation method and that the tenant's share should be assessed by reference to the Scheme of Control: the proper tenant return is the Permitted Return (PR) under the SOC applied to the hypothetical tenant's ANFA (PR x HT ANFA); HEC's proposed additional 25% allocation of DB for risk/enterprise was rejected as arbitrary; assets under construction are not rateable as a matter of law and should be adjusted out; the Contractor's Basis is inappropriate to capture monopoly and synergy value of this integrated electricity tenement.