Hong Kong Case Law: Decisions & Judgments

Topic

Residual valuation

Legal area

Court

4 Apr 2023

DOUBLE TOP DEVELOPMENT LTD AND OTHERS v. KENTONE LTD AND OTHERS

Citation

[2023] HKLdT 28
Court

Lands Tribunal
Case number

LDCS16000/2019

Applicants satisfied statutory ownership threshold under the Specification Notice; building expert evidence established the building is over design life and in poor repair so redevelopment justified; applicants made offers that, on the evidence, fell within a fair and reasonable band so reasonable steps were taken; tribunal assessed RDV at HKD 465,000,000 and set reserve price at that amount; alleged special interest/hope value was not proven by market evidence and cannot be added to reserve price absent proof.
28 Feb 2022

DELUXE ASCENT LTD v. DIRECTOR OF LANDS

Citation

[2022] HKLdT 11
Court

Lands Tribunal
Case number

LDLR9/2018

The Tribunal accepted the applicant's expert residual valuation template but adjusted key valuation inputs, discounted for uncertainty and partial interest and applied a 10% partial-interest discount to reach the applicant's share. The Tribunal held that prior resumptions under the Roads Ordinance extinguished or at least defeated any prescriptive vehicular right that could interfere with the resumption; Lot 1941A had no binding lease site coverage restriction but planning measures forming the resumption scheme must be disregarded; no severance loss was proved. Net award to the applicant was…
15 Jan 2019

BILLTECH LTD AND OTHERS v. DIRECTOR OF LANDS

Citation

[2019] HKLdT 3
Court

Lands Tribunal
Case number

LDLR1/2011

Respondent failed to prove on balance of probabilities that the Prohibited Zone had been validly gazetted under reg 14; therefore the Prohibited Zone was not lawfully designated, s.12(c) did not exclude construction of car parking levels in the hypothetical redevelopment, and the BA's GFA discretion under reg 23(3)(b) is not caught by s.12(c); accordingly valuation should assume car parking levels and compensation is fixed at HKD 204,500,000.
7 Jun 2018

CHENG KWOK KUEN in his capacity as the Administrator of the estate of CHENG LAM YING LAN, deceased v. DIRECTOR OF LANDS

Citation

[2018] HKLdT 41
Court

Lands Tribunal
Case number

LDLR6/2015

The tribunal held the Lot was not a Class A site because Yu Lok Lane as a whole did not satisfy the definition of a specified street of at least 4.5m in overall width; consequently the Lot was an unclassified site and, on balance of probabilities and expert evidence, the Building Authority would have permitted a 3-storey plus cockloft non-domestic redevelopment under reg 19(3); adopting that hypothetical development and residual valuation parameters the market value as at the date of resumption (9 April 2009) was $2,530,000, which the respondent must pay as compensation.
4 Aug 2017

ALLIANCE FAME LTD AND OTHERS v. MAK KAM TO AND OTHERS

Citation

ALLIANCE FAME LTD AND OTHERS v. MAK KAM TO AND OTHERS
Court

Lands Tribunal
Case number

LDCS9000/2015

The Tribunal held applicants were entitled to apply under the lowered 80% threshold; on expert evidence the Building was over 50 years and in poor structural and general repair such that redevelopment was justified; applicants had taken reasonable steps to acquire remaining shares by multiple offers above EUV/RDV; Tribunal accepted the applicants' residual valuation methodology with adjustments and fixed the land/RDV and auction reserve price at HKD 1,620,000,000, ordered sale by public auction, appointed trustees and made a costs order nisi in favour of certain respondents.
31 Jul 2017

CHANCEMORE LTD v. YEE ON ENTERPRISES LTD

Citation

CHANCEMORE LTD v. YEE ON ENTERPRISES LTD
Court

Lands Tribunal
Case number

LDCS17000/2015

Applicant satisfied statutory ownership threshold (80%) under the 2010 Notice; unchallenged expert evidence established the Building was at or beyond its design life and beyond reasonable economic repair; applicant made reasonable attempts and offers to acquire minority shares; the Tribunal accepts the applicant's residual valuation template (with adjustments adopted by the Tribunal) and fixes RDV/reserve price at $441,000,000, and therefore grants an order for compulsory sale by auction with specified terms.
31 Dec 2015

HARVEST TREASURE LTD AND OTHERS v. CHEUNG FAT ENTERPRISES LTD AND OTHERS

Citation

HARVEST TREASURE LTD AND OTHERS v. CHEUNG FAT ENTERPRISES LTD AND OTHERS
Court

Lands Tribunal
Case number

LDCS8000/2014

Applicants met the applicable 80% threshold; the disciplinary finding against the applicants' valuer did not render his evidence inadmissible because in civil proceedings there is no absolute duty on an expert to disclose such inquiries to the tribunal and his methodology and evidence could be tested and given appropriate weight; on the evidence (structural and building surveys, tests and valuation analyses) redevelopment was justified under s.4(2)(a) due to age, obsolete design and state of repair with substantial repair cost uneconomic; applicants took reasonable steps under s.4(2)(b); RDV…
15 Apr 2014

HIGHAIL COMPANY LTD AND OTHERS v. DIRECTOR OF LANDS

Citation

HIGHAIL COMPANY LTD AND OTHERS v. DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR5/2009

On the balance of probabilities as at the date of resumption (23 February 2008) redevelopment of Nos 213 and 215 as a single amalgamated site was likely; therefore compensation must reflect the development value and is to be assessed on a joint‑site basis by the residual valuation method using the Tribunal‑determined parameter values, yielding an award of HK$50,785,000.
9 Mar 2012

SIU SAU KUEN v. THE DIRECTOR OF LANDS

Citation

SIU SAU KUEN v. THE DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR1/2010

Compensation must be the open market value at the date of resumption (15 October 2005) under s12(d) Cap 124; applicant failed to prove on the balance of probabilities any development value or suitable comparables to support residual or premium‑ratio enhancements, so the Tribunal applied direct comparison method to local comparables and awarded HKD 4,710,000.
27 Mar 2009

FINEWAY PROPERTIES LTD v. AU YEUNG CHOW AND ANOTHER

Citation

FINEWAY PROPERTIES LTD v. AU YEUNG CHOW AND ANOTHER
Court

Lands Tribunal
Case number

LDCS6000/2007

Tribunal rejected respondent's expert second EUV report and RDV evidence as unreliable, accepted applicant's expert Mr Chan's valuations and residual valuation methodology, fixed EUV of the building at HK$40,400,000 and EUV of Respondent's unit at HK$4,730,000 (11.7079%), fixed RDV at HK$71,929,355 (rounded to HK$72,000,000), found redevelopment justified on age and state of repair and that Applicant made reasonable offers (up to HK$8,000,000), and therefore granted an order for compulsory sale with reserve price set at HK$72,000,000.