Compulsory sale for redevelopment

Gentway Ltd v Li King Fong ([2011] HKEC 597, LT) concerned property on Tai Po Road. The applicants applied for an order for sale under section 3 of the Land (Compulsory Sale for Redevelopment) Ordinance (Cap. 545). They owned 92.66% of the undivided shares in the property. The respondents were other owners of undivided shares. The applicants had made attempts to buy their shares at prices that the judge found to be reasonable but, for one reason or another, these attempts had not succeeded. The existing use value of the property was HK$88.16m. Its redevelopment value was HK$291m. The building had reached the end of its working life and it would be very expensive to put it into a fit state. It was currently not tenantable and below the standard fit for human habitation.  The judge was satisfied that the requirements of section 4(2) of the Ordinance had been met. He made an order for sale by public auction with a reserve price of HK$291m

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