Polytec Asset Holdings Ltd. plans to seek compensation from the Macau government, as its final appeal with the Tribunal de Ultima Instancia of the administrative region over a terminated development project was rejected May 23.
The Kowloon Development Co. Ltd. subsidiary faced delays over the approximately HK$7.84 billion project, the site for which was bought in 2006 and the development expected to be delivered on or before Dec. 25, 2015, leading the government to repossess the development site without any compensation.
Polytec Asset said it obtained legal opinion that its principal application to request for compensation of time by extending the concession agreement will cease to proceed, but that it was also made aware that it has strong legal grounds and arguments to seek for compensation for losses and damages due to the delays it faced to secure approvals and permits for the development. It said an application for such action will be made as soon as practicable.
Kowloon Development added that the canceled development is not expected to have any material effects on its or the subsidiary's financial position. The Hong Kong-based diversified developer will also actively explore development and investment opportunities in Macau, including the Pearl River Delta.
In relation to the announcement, Kowloon Development's shares on the Hong Kong stock exchange halted from trading May 23, 1 p.m. local time, with resumption scheduled 9 a.m. on May 25.
