Hong Kong Case Law: Decisions & Judgments

Topic

Expectations in 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

CACV116/2015

The Court held that the CFA's treatment of reclamation as deemed to have occurred is a legal assumption for accrual and does not change real‑world market expectations; therefore the same market expectations and uncertainty/risk factors must inform both valuations (with and without marine rights). The Tribunal erred in (a) applying a different (effectively 100%) risk factor to the After Value, (b) construing 'godown' to include open mid‑stream storage (the correct construction requires a building), and (c) failing to account for the sub‑tenancy deferment and admitted demolition cost calculatio…
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

CACV15/2015

The Court held that valuations under s.12 FSRO must use the same market expectations and public information as at the valuation date for both the value with marine rights and the value without marine rights; the legal fiction treating reclamation as having been 'treated as having taken place' does not permit different uncertainty/risk factors or a different timing assumption for the After valuation; 'godown' in Special Condition 3(a) requires a building (open storage/mid‑stream operation is not a godown), the Tribunal erred in failing to account for the three‑month sub‑tenancy delay and admit…

Hong Kong Case Law

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

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