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Hong Kong Lawsuit Filed Over CCCC Brickell Towers Delay

Hong Kong Lawsuit Filed Over CCCC Brickell Towers Delay

A partner in Brickell’s $875 million CCCC Towers is suing the majority owner for failing to move forward with development.

Asia Allied Infrastructure Holdings Limited said they were taking legal action in a Hong Kong court. The company owns a 45% stake, purchased in 2015 for $40.5 million (Asia Allied was then known as Chun Wo).

According to Asia Allied, no development progress has been made since their stake was purchased. Majority partner China City Construction Group also failed to answer repeated requests for information on how the development would be financed (China City has been struggling with liquidity issues).

Twin towers were planned, reaching a height of 1,069 feet – taller than any other building in Miami, and above the Federal Aviation Administration height limit. It was to include residential condos, hotel, office and retail.

Asia Allied shares trade on the Hong Kong Stock Exchange.

 

ASIA ALLIED INFRASTRUCTURE TO TAKE LEGAL ACTION
IN PROTECTION OF SHAREHOLDERS’ INTERESTS
* * * * *
PETITION AGAINST CCCI HAS BEEN FILED TO HIGH COURT IN HONG KONG
IN RESPECT OF PROPERTY DEVELOPMENT PROJECT IN MIAMI
(Hong Kong, 1 February 2018) — Asia Allied Infrastructure Holdings Limited (the “Group”) (stock code: 00711) announces today that it has, through its indirectly wholly-owned subsidiary Champ Prestige International Limited (“Champ Prestige”), commenced legal proceedings against China City Construction (International) Co., Limited (“CCCI”) and the target company, which is 45% held by Champ Prestige and 55% held by CCCI (the “JV”) for a joint development project in Miami (the “Project”).

The management has repeatedly requested CCCI to clarify its financial position and provide relevant financing proposal in respect to the development of the land in Miami. As the requests have not been answered, the management believes such legal actions are necessary for protecting the Group and its shareholders’ interests as a whole.

In view of the fact that no progress has been made in respect of the development of the Project since the entering into of a sale and purchase agreement between CCCI and Champ Prestige, and it is expected that CCCI will not be capable of continuing with its investment in the Project due to its financial situation, Champ Prestige has on 1 February 2018 filed a petition in the High Court of Hong Kong against CCCI and the JV, to claim for, among others:

(i) the winding up of the JV in accordance with the provisions of the Companies (Winding Up and Miscellaneous Provisions) Ordinance

(ii) an order that CCCI pay Champ Prestige the costs of and incidental to the petition

The board believes the suspension of the development of the land in Miami will not have adverse impact on the financial position and operation of the Group. Instead, the commencement of the legal actions is necessary for protecting the interests of the Group and its shareholders. Moving forward, the Group will continue to diversify its income stream and seek potential investment opportunities that are beneficial to the Group and its shareholders, with key focus placed on the ‘Belt and Road’ regions and the Guangdong-Hong Kong-Macau Big Bay Area.

 

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Anonymous
Anonymous

Good! Anybody should be punished if they fail to move on with development. Build! gosh damn it!…

Anonymous
Anonymous

If any representative of Swire is reading this, please have them buy this lot and develop it the right way. You can put massive retail in the bottom and build it really high. Best of all it is right next to the Metromover. Truly a diamond in the rough.

Anonymous
Anonymous

What a waste of prime real estate. Yet suburbia keeps on growing

Anonymous
Anonymous

This block is cursed.

Fifo
Fifo

And just about all of us would love to own it.

Anonymous
Anonymous

First in first out

Anonymous
Anonymous

Doesn’t look good for investor.

Anonymous
Anonymous

It was nicer the former project envisioned for that site (Capital at Brickell).

Anonymous
Anonymous

Infinity II

Anonymous
Anonymous

Welp, here we go again… nothing nothing nothing………