Hong Kong Case Law: Decisions & Judgments

Topic

Residual development value (rdv)

Legal area

Court

23 Dec 2022

ABLE WIDE CORPORATION LTD AND OTHERS v. THE INCORPORATED OWNERS OF GOOD YEAR INDUSTRIAL BUILDING AND ANOTHER

Citation

[2022] HKLdT 69
Court

Lands Tribunal
Case number

LDCS1000/2020

Applicants satisfied statutory 90% ownership requirement; evidence on structural and building defects, obsolescence and repair needs shows the Building has reached or is near end of its economic/design life such that redevelopment is justified under s4(2)(a); revitalisation/wholesale conversion is not a sufficiently certain or higher‑value alternative in multiple ownership and cannot block an order for sale; applicants took reasonable steps to acquire remaining shares under s4(2)(b); Tribunal adopted a residual valuation with developer's profit at 20% and appropriate deductions to fix the mar…
19 Jul 2022

PRO SHINE INTERNATIONAL INC LTD AND ANOTHER v. KWOK HON PON AND OTHERS

Citation

[2022] HKLdT 29
Court

Lands Tribunal
Case number

LDCS26000/2020

The Tribunal held that the applicants met the statutory ownership threshold (80% because of the 2010 Notice), that redevelopment was justified due to the building's advanced age, serious structural deterioration and functional obsolescence as evidenced by expert reports, and that the applicants had taken reasonable steps to acquire remaining interests; accordingly an order for sale by public auction was made with the reserve price set at HKD 210000000 and trustees appointed to oversee sale and distribution.
19 Nov 2018

TSE SUI LUN v. DIRECTOR OF LANDS

Citation

[2018] HKLdT 89
Court

Lands Tribunal
Case number

LDLR3/2012

Applicants failed to prove on a balance of probabilities that the Subject Properties had redevelopment potential within a reasonably foreseeable timescale under the Siu Sau Kuen test (absence of evidence of site assembly or developer interest); accordingly valuation on redevelopment basis was rejected and the Tribunal assessed the properties on EUV by direct comparison, awarding HKD 8,710,000; HKD 8,080,000; and HKD 10,070,000 respectively.
26 Jul 2018

FAIRBO INVESTMENT LTD v. LEUNG CHIT, THE PERSON APPOINTED BY ORDER DATED 22ND NOVEMBER 2017 TO REPRESENT THE ESTATE OF LEUNG TAI CHEUNG ALSO KNOWN AS LIANG TAI CHEUNG AND LIANG CHUN, DECEASED AND ANOTHER

Citation

[2018] HKLdT 57
Court

Lands Tribunal
Case number

LDCS23000/2014

The tribunal held the applicant satisfied the statutory undivided share threshold, redevelopment was justified by age and poor condition of the buildings, the applicant took reasonable steps to acquire remaining shares, the EUV assessments in the applicant's valuation were accepted as fair and reasonable, and the RDV was fixed at HKD 418,000,000 (using a 10% profit margin) leading to an order for sale of the lots as a composite site with proceeds apportioned by EUV.

Hong Kong Case Law

ABLE WIDE CORPORATION LTD AND OTHERS v. THE INCORPORATED OWNERS OF GOOD YEAR INDUSTRIAL BUILDING AND ANOTHER

PRO SHINE INTERNATIONAL INC LTD AND ANOTHER v. KWOK HON PON AND OTHERS

TSE SUI LUN v. DIRECTOR OF LANDS

FAIRBO INVESTMENT LTD v. LEUNG CHIT, THE PERSON APPOINTED BY ORDER DATED 22ND NOVEMBER 2017 TO REPRESENT THE ESTATE OF LEUNG TAI CHEUNG ALSO KNOWN AS LIANG TAI CHEUNG AND LIANG CHUN, DECEASED AND ANOTHER