Update on Giant Observation Wheel in Jakarta
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22 February 2016
Challenger Acquisitions Limited
('Challenger' or the 'Company')
Update on Giant Observation Wheel in Jakarta
Challenger Acquisitions Limited (LSE: CHAL), a leader in the Giant Observation Wheel industry, is pleased to announce that the land site has been secured for a 125m giant observation wheel to be built in Jakarta, South East Asia. This follows an initial project contract entered into between Starneth Group (100% owned by Challenger) and a local developer ('the Developer') in June 2015.
Highlights
· Land site secured for a 125m giant observation wheel to be built in Jakarta
· Developer is in final stages of the bank financing process
· Funding at the project level and will not require any contribution from Challenger
· Once financing is complete, wheel construction will commence
· The Starneth Group will also receive a minority stake in the project
· Further details relating to the proposed development of the wheel will be provided when funding arrangements are in place and Starneth has received its first payment
Mark Gustafson, the Company's Chief Executive Officer, said: "Securing the land site in Jakarta was one of the two remaining hurdles for this project. Once the Developer secures the project financing then Jakarta will be the first project in our pipeline of 25 Giant Observation Wheels, which we are currently evaluating. This is in line with our strategy to secure at least one new Giant Observation Wheel project each year. As our engineering work on the New York Wheel Project starts to reduce ahead of its targeted opening in 2017, then work on the Jakarta project will take over. In the meantime we are also currently in discussions with other developers with regards to Giant Observation Wheels within our pipeline and look forward to providing further updates on these exciting developments in due course."
Further Information on the Jakarta Project
In June 2015, the Starneth Group (100% owned by Challenger since 15th July 2015) signed an initial project contract with the Developer for turnkey project management services for the design, procurement, fabrication, assembly, erection and commissioning of a Giant Observation Wheel in Jakarta, South East Asia.
The Developer is currently in the final stages of the bank financing process for the project following an extension period being agreed to by Starneth. Due to the funding for the wheel being at project level, it will therefore be non-dilutive to Challenger.
Once the financing is complete, the Giant Observation Wheel project will commence. It is envisaged that it will take 24 months from the official commencement date for the Iconic Wheel component to be built. When built, the Iconic Wheel will be 125 metres tall and will comprise of 18 capsules, each carrying 40 passengers with a maximum capacity of 1,440 customers per hour.
Further details relating to proposed development of the wheel will be provided when funding arrangements are in place.
**ENDS**
For more information visit www.challengeracquisitions.com or enquire to:
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Challenger Acquisitions Limited |
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Mark Gustafson |
+1 604 454 8677 |
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St Brides Partners Ltd (PR) |
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Lottie Brocklehurst, Charlotte Heap |
+44 (0) 20 7236 1177 |
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finnCap (Financial Adviser and Broker) |
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Adrian Hargrave, James Thompson, Kate Bannatyne |
+44 (0) 20 7220 0500 |
Notes to Editors:
Challenger (LSE: CHAL) is focused on the design, engineering, project management and investment in select giant observation wheels. By combining its world-class team of technical engineering and project management skills with proven international financial expertise, the Company is ideally positioned to become a leader in the giant observation wheel sector.
The Company, which also has a ~3% equity interest in the US$500 million New York Wheel Project, is currently focusing on appraising approximately 25 opportunities in its project pipeline where it believes that it can utilise its expertise. With a team that has worked on four of the largest giant observation wheels constructed over the last 16 years, including the iconic London Eye, the Company is building on its unique position to deliver projects and generate shareholder value.
This information is provided by RNS
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