US$1 Million Received and New York Wheel Update
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.
For Immediate Release
20 July 2016
Challenger Acquisitions Limited
("Challenger" or the "Company")
US$1 Million Received and New York Wheel Update
Challenger Acquisitions Limited (LSE: CHAL), a leader in the Giant Observation Wheel industry, announces that it has received US$1 million from New York Wheel Investor LLC ("NYWI"). These funds, raised by Challenger in January 2016 (see announcement 29.01.16), were held in escrow by NYWI until final funding arrangements for completion of the New York Wheel Project (the "NYW Project") were in place. Challenger has been informed by NYWI that it has now received sufficient funding commitments from its sponsoring investors and therefore does not require these funds.
NYWI is the company set up to fund the equity component of the NYW Project on New York Harbor which commenced construction in May 2015. Challenger now has a firm investment of US$3 million in the equity of NYWI, representing an interest of approximately 2% in the US$590 million NYW Project. The NYW Project includes a 630ft observation wheel, a 68,000 sq ft terminal and retail building, a 950 space parking garage and a 5,000 person capacity green roof for events.
With funding formally secured to ensure completion of the NYW Project, the project continues to advance towards its opening. This is now expected in early 2018 which is slightly later than expected due to the re-engineering work necessary for the newly indicated geotechnical conditions, wheel fabrication delays caused by that reengineering and some adjustment to wheel erection sequencing.
Approximately US$275 million has been spent on the NYW Project to date, with major developments so far including:
· over 8,000 cubic yards of concrete were recently delivered to the site for the foundation for the Giant Observation Wheel pad and the four leg pedestals
· over 1,800 tons of structural steel has been used to date for below ground structures
· the majority of the parking garage is now complete
· a 400ft crane has arrived at the Brooklyn prep site to start the erection process for some of the main components for the giant observation wheel
· work will commence on the terminal building in late summer 2016
For more information see www.newyorkwheel.com.
Mark Gustafson, the Company's Chief Executive Officer said: "We are very pleased that the funding for the entire NYW Project has been secured and we look forward to seeing all the above ground developments leading up to the grand opening of this project."
"We believe that the NYW Project offers our investors a unique value uplift opportunity and we are delighted to report on the excellent progress that continues to be made in building this momentous entertainment complex. The NYW Project comprises a 630ft observation wheel with maximum capacity for approximately 30,000 visitors per day offering views of New York Harbor, the Statue of Liberty and the Lower Manhattan skyline."
This announcement contains inside information.
**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 US$3 million equity interest in the US$590 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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