Proactive Investors - Run By Investors For Investors

Challenger Acquisitions to increase stake in New York Wheel

“We strongly believe that an investment in this iconic project represents exactly why Challenger was created," Gustafson said.
Challenger Acquisitions to increase stake in New York Wheel
A 640ft observation wheel will take in the New York skyline

Challenger Acquisitions (LON:CHAL) is to increase its stake in the New York Wheel project with a US$1mln investment.

The company already has a 2.4% interest in the US$500mln project, to erect a 630ft observation wheel on Staten Island, as well as an adjoining terminal and retail development, and its stake will now increase to 3%.

Construction work began on Staten Island in May 2015, and the attraction is anticipated to open in mid-2017.

It is a key focus for Challenger, which completed a reverse takeover last year and now has interests in a number of ‘big wheel’ projects as well as the project management teams that help develop them.

"We are delighted to increase our investment in the New York Wheel project,” said Mark Gustafson, Challenger chief executive.

He added: “We strongly believe that an investment in this iconic project represents exactly why Challenger was created and that the value of this investment will grow significantly as this project approaches its mid-2017 opening date. 

“In the meantime we continue to evaluate our pipeline of 25 giant observation wheels worldwide, where our involvement could range from design through to investment, and look forward to providing updates throughout 2016."

To facilitate the new investment, Challenger is issuing convertible loan notes.

It told investors that the notes aggregate principal would by £4mln, with £1mln initially issued. The debt will carry 8% annual interest and can be converted at a price of 80p per share. And the debt is secured against some of the company’s interest in New York Wheel Investor LLC vehicle.

View full CHAL profile View Profile

Challenger Acquisitions Limited Timeline

Related Articles

picture of observation wheel
March 20 2018
Challenger expects construction of New York Wheel to get back on track this year after a temporary setback

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use