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
- LDRA365/2004
The Tribunal held the correct valuation method is the receipts and expenditure method with the tenant's share apportioned by an asset-split using depreciated replacement cost as proxy for market value, rejecting the Commissioner's WACC approach and rejecting use of the contractor's basis as a reliable adjunct; the China assets materially contributed and warranted an uplift, assets under construction are not rateable and appropriate deductions must be made, while dedicated substations and the identified plant, cables and pipework are rateable under s8A.