TNAG-0672-FCO40-821-Legislation-for-Crown-lands-in-Hong-Kong-1977 — Page 202

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.