Able Wide Corporation Ltd and Others v. The Incorporated Owners of Good Year Industrial Building and Another

LDCS 1000/2020

[2022] HKLdT 69

IN THE LANDS TRIBUNAL OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

LAND COMPULSORY SALE MAIN APPLICATION NO 1000 OF 2020

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Before: Deputy District Judge Roy Yu, Presiding Officer of the Lands Tribunal and Mr Lawrence Pang, Member of the Lands Tribunal

Dates of Trial: 11 – 15 July 2022 and 18 –19 July 2022

Date of Joint Inspection: 12 July 2022

Date of Closing Submission: 15 September 2022

Date of Judgment: 23 December 2022

Date of Corrigenda: 10 January 2023

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CORRIGENDUM

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1.  On page 25, paragraph 58: “adopt $2,450,000” to be replaced by “adopt $24,500,000”;

2.  On page 29, paragraph 74: “market value of the Lot at $1,128,000,000(i.e. an accommodation value of $80,120 per sq m)” to be replaced by “market value of the Lot at $1,108,000,000(i.e. an accommodation value of $78,700 per sq m)”;

3.  On Page 52, (d)(ii): “reserve price be set at $1,128,000,000” to be replaced by “reserve price be set at $1,108,000,000”

4.  On page one, name of the 6^th Applicant should be “HIGH SMART INDUSTRIAL LIMITED領駿實業有限公司”, and

5.  Revised appendix on page 54 as follow:

Appendix

Residual Valuation
Gross Development Value
4/F-18/F & 21/F-38/F Workshops	9,789.993	m2	x	$245,000	/ m2	=	$2,398,548,285
5/F Flat Roof	53.910	m2	x	$36,000	/ m2	=	$1,940,760
Private Car Parking Space	13	Nos	x	$2,160,000	each	=	$28,080,000
Private Car Parking Space (Double Deck)	11	Nos	x	$1,510,000	each	=	$16,610,000
Light Goods Vehicle Parking Space	7	Nos	x	$3,260,000	each	=	$22,820,000
Heavy Goods Vehicle Parking Space	4	Nos	x	$4,100,000	each	=	$16,400,000
Motorcycle Parking Space	3	Nos	x	$140,000	each	=	$420,000
							$2,484,819,045
Less Marketing Costs			@	3%			0.97
							$2,410,274,474
Present Value in	3	years	@	4.5%			0.8763
								$2,112,123,522
Development Costs
Demolition Cost	10,182.57	m2				=	$24,500,000
Professional Fee			@	6%			1.06
Developer's Profit			@	20%			1.20
							$31,164,000
Present Value in	0.375	year	@	4.5%			0.9836
								$30,652,910
Construction Costs							$468,687,778
Professional Fee			@	6%			1.06
Developer's Profit			@	20%			1.20
							$596,170,854
Present Value in	1.875	years	@	4.5%			0.9208
								$548,954,122
								$1,532,516,490
Stamp Duty			@	4.25%
Legal Cost			@	0.2%
Developer's Profit			@	20%			÷	1.2445
							Full Market Value	$1,231,431,491
Premium payable for User Relaxation							10%	$123,143,149
								$1,108,288,342
							say	$1,108,000,000
					Accommodation Value			$78,699	/ m2

Dated: 10 January 2023