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Challenger’s New York wheel now fully funded

The company says the US$590mln New York wheel project – in which it has a 2% interest – is now fully funded through to completion

pods on an observation wheel, similar to the London Eye
Once finished, the New York wheel will offer visitors views of the Statue of Liberty and the Manhattan skyline

Challenger Acquisitions Limited (LON:CHAL) has told investors that the US$590mln New York observation wheel project, which it has a 2% stake in, is now fully funded through to completion.

As a result, the company has received US$1mln from New York Wheel Investor LLC (NYWI) – the company set up to fund the equity component of the project.

The US$1mln was originally raised by Challenger back in January and was held in escrow by NYWI until it had received sufficient funding from its sponsoring investors.

“We are very pleased that the funding for the entire NYW Project has been secured,” said chief executive Mark Gustafson.

“We look forward to seeing all the above ground developments leading up to the grand opening of this project."

Challenger added that the opening of the wheel on New York Harbour is now expected to be in early 2018, slightly later than originally planned.

It said that some necessary re-engineering work caused delays to the fabrication of the 630ft wheel, as well as the erection of the frame.

Approximately US$275mln has so far been spent on the project, which includes a terminal and retail building and parking garage, as well as the observation wheel itself.

It is hoped that the wheel, when at full capacity, will be able to carry 30,000 visitors per day, offering views of New York Harbour, the Statue of Liberty and the Manhattan skyline.

Shares were up 0.5p, or 2.5%, to 21.5p.

Quick facts: Challenger Acquisitions Limited

Price: 0.13 GBX

LSE:CHAL
Market: LSE
Market Cap: £410.2 k
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