 In the "Cross-Harbour Tunnel" case with a relatively small amount of tenant's capital, it was appropriate to have regard to the gross takings.In the "China Light and Power" case, the return on tenant's assets was determined after having regard to Capital Asset Pricing Model (CAPM) and Weighted Average Cost of Capital (WACC).Recreation Clubs
"Royal Hong Kong Golf Club v CRV [1977] HKLTLR 236"
"Hong Kong Country Club v CRV [1978] HKLTLR 67"
"Royal Hong Kong Yacht Club v CRV [1987] HKLTLR 1"
These cases established that recreation clubs are to be assessed in Hong Kong based on the Contractor's Test principle with the land value reflecting the value for recreation or agricultural use.