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
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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.