Assessment of Rental Value
for Lai Chi Kok Amusement Park (5-year lease)
ANNEX B
Average net profit
(3 years, 1970/71, 71/72, 72/73)
Add back rental paid to Government
Less owner's interest at 15% of gross
average receipts of $4,274,639
Net rental expected.
Capitalize 23 years at 121⁄2%
Capital value (for Crown land & private
agricultural land)
Less value for private agricultural land
116,633 s.f. at ***$10 p.s.f.
$1,476,755 p.a.
$225,000 $1,701,755
$ 641,195
$1,060,560 p.a.
*7.474
**$7,926,625
$1,166,330
$6,760,295
Rental for 5-year lease
(decapitalised at 10% perpetuity)
Note
*
$ 676,029
$
say
675,000 p.a.
Present value of $1 received annually for 23 years at 12%
7.474.
**The net premium of $7,200,000 previously recommended to Ex. Co. was derived from this figure, a capital value of $7,926,625.
*** This is the increased compensation figure under the new
resumption policy.