Hong Kong Case Law: Decisions & Judgments

Topic

Effect of sub-tenancy on valuation

Legal area

Court

16 May 2016

PENNY\'S BAY INVESTMENT CO LTD v. DIRECTOR OF LANDS

Citation

PENNY\'S BAY INVESTMENT CO LTD v. DIRECTOR OF LANDS
Court

Court of Appeal
Case number

CACV14/2015

The Court held that for valuation under FSRO s12 the same prevailing market expectations and the same assessment of uncertainty must inform both the value of the land with marine rights and the value without marine rights; the legal fiction that reclamation is treated as having occurred on the authorization date does not justify applying different expectation or risk factors to the two valuations; additionally, 'godown' in the grant requires covered storage so mid‑stream open container storage is not godown use under Special Condition 3(a). The Tribunal must adjust the before valuation for th…
16 May 2016

PENNY\'S BAY INVESTMENT CO LTD v. DIRECTOR OF LANDS

Citation

PENNY\'S BAY INVESTMENT CO LTD v. DIRECTOR OF LANDS
Court

Court of Appeal
Case number

CACV16/2015

The Court held that the legal fiction treating injurious affection as having accrued on the date of authorization does not compel treating the After valuation as if physical reclamation had already occurred for the purpose of assessing market expectations; expectations are factual matters to be assessed from public information at the valuation date and applied consistently to both valuations. The Tribunal erred in treating mid-stream open storage as a "godown" under Special Condition 3(a) (godown requires a warehouse/building) and in applying different uncertainty/risk factors to the Before a…
16 May 2016

PENNY\'S BAY INVESTMENT CO LTD v. DIRECTOR OF LANDS

Citation

PENNY\'S BAY INVESTMENT CO LTD v. DIRECTOR OF LANDS
Court

Court of Appeal
Case number

CACV119/2015

The Court held that the CFA measure of compensation stands but requires that market expectations and their uncertainty be assessed by reference to public information and reality and applied consistently to both the value with marine rights and value without marine rights; the Tribunal erred in treating the after valuation as carrying a different (effectively unitary) certainty and in construing 'godown' to include open storage for mid‑stream operations; the Tribunal also failed to account for the three‑month sub‑tenancy and accepted an agreed correction to demolition costs, so parts of the Tr…

Hong Kong Case Law

PENNY\'S BAY INVESTMENT CO LTD v. DIRECTOR OF LANDS

PENNY\'S BAY INVESTMENT CO LTD v. DIRECTOR OF LANDS

PENNY\'S BAY INVESTMENT CO LTD v. DIRECTOR OF LANDS