July 30, 2014

Court grants CPG motion on Okada deal

Century Properties Group Inc (CPG) has secured an order from a regional trial court that barred the Okada group from dealing with any other party for the development of commercial and residential component of its integrated leisure and entertainment complex. This arose after CPG filed a motion for reconsideration of an earlier court ruling which invalidated CPG’s agreement with the Japanese group. The latter earlier unilaterally scrapped its deal with CPG and another party for the joint development of the commercial and residential component of the integrated casino project.

Our take: The recent rulingis favorable to CPG assuming that the Okada group will not raise the case to the Supreme Court that can potentially further delay the implementation of the deal. The agreement would have granted CPG a 36% stake in a company that owns the 44-hectare property on which the integrated entertainment complex will be built. The agreement will give CPG access to five hectares of land within the complex where it was looking to build over 300,000 sqms in gross floor area of luxury residential and retail space.– WealthSec