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Peninsula Garden is a hidden gem, an extensive multi-level open space between Crestmont and Coastline, with sitting out areas, water features, playgrounds, community garden and meandering paths. It is a wonderful, shaded woodland with mature trees — yet probably unknown to most DB residents outside of Peninsula Village.
However, even while they enjoy this beautiful spot, many Peninsula residents worry that it is too good to last. The area lies outside all individual developments within Peninsula Village, on land that is defined as Reserved Development Area in the Peninsula Sub-DMC. They worry that Hong Kong Resort Company Limited (HKR) could develop the area at any time.
If Peninsula residents and owners understand the share regime under the DMC, they can set their minds at ease. This area can never be developed for residential housing, as long as the share regime described in the Deed of Mutual Covenant (DMC) is respected.
As explained previously, a set number of undivided shares has been allocated to each use on the Lot in the DMC, with Reserve Undivided Shares standing by to top-up as needed. Accordingly, in the Peninsula Sub-DMC, a set number of undivided shares of each use has been allocated to the Village. Once the Sub-DMC was issued, shares could not be added or subtracted; shares could not be changed from one use to another.
In the Peninsula Sub-DMC, a total of 4,740 Residential Development Undivided Shares were sub-allocated to residential units prior to sale, while a further 8,460 Residential Development Undivided Shares were allocated to the Village but held for sub-allocation to residential units to be built in subsequent phases. No Reserve Undivided Shares were allocated to the Village.
The last phase to be developed in Peninsula was Coastline. The authority that is in charge of approving DMCs, the Legal Advisory and Conveyancing Office (LACO) under Lands Department, will normally require that Management Units (MU) and undivided shares are allocated to units on a 1:1 basis. For whatever reason, at Coastline HKR found itself with fewer Residential Undivided Shares than needed to meet this ratio. In other words, HKR had not allocated sufficient Residential Undivided Shares to Peninsula Village in the Sub-DMC.
Fortunately for HKR, LACO allows sub-sub-DMCs to be approved under an accelerated process. In addition, no statutory declaration was deposited in the Land Registry by the solicitors representing the development. HKR was able to issue a sub-sub-DMC that allocated less than one undivided share per MU, as may be seen in the schedule from the Coastline Sub-Sub-DMC.
This means that all Coastline Owners own fewer undivided shares in the Lot in proportion to the size of their units than most other owners in Discovery Bay. On the other hand, this treatment shows that HKR recognised that it could not use, for example, Retained Area Undivided Shares to make up the shortfall.
It also means that there are no Residential Development Undivided Shares left to allocate to Residential Units in Peninsula Village.
And that is why Peninsula Village residents and owners can continue to enjoy Peninsula Garden, safe in the knowledge that no further residential development may take place within their Village.