CHAL.L Regulatory News (CHAL)

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For Immediate Release

20 October 2016

Challenger Acquisitions Limited

("Challenger" or the "Company")

 New York Wheel Construction Update

Challenger Acquisitions Limited (LSE: CHAL), a leader in the Giant Observation Wheel industry, is pleased to provide an update on construction of the New York Wheel Project ("NYW Project"), a large entertainment complex currently being built on the New York Harbour, which will feature a 630ft Giant Observation Wheel ("GOW"), a 68,000 sq ft terminal and retail building, a 950 space parking garage and a 5,000-person capacity green roof for events. Challenger has made an investment of US$3 million representing a ~2% equity stake in the NYW Project.

Approximately US$300 million has been spent on the NYW Project to date, with major developments so far including:

· The foundation for the GOW pad is now complete (8,000 cubic yards of concrete and 1,800 tons of structural steel). The four leg pedestals (totaling 90 tonnes apiece) have been fabricated and are enroute for installation from Montreal.

· The majority of the parking garage is now operational (825 of the 950 spaces). It is operating under a Temporary Certificate of Occupancy whilst the Mechanical Electrical Plumbing work is being completed to open the entire facility on a permanent basis in December.

· A 465ft crane has arrived at the Brooklyn prep site to start the erection process for some of the main components for the GOW. It will be assembled on site in November.

· The foundation for the terminal building is now mostly complete with steel erection well underway for the structure. It will be structurally complete in December.

· The legs for the wheel have arrived in the South Brooklyn Marine Terminal. Each of the four legs weighs 550 tonnes, measuring 18 feet wide and 275 feet tall (please see the photographs on the following link: http://www.rns-pdf.londonstockexchange.com/rns/9939M_-2016-10-19.pdf) They will be deployed to the site and erected onto the pedestals in December.

· Manufacturing continues on the other major components such as the rim, cables, spindle, drive towers, capsules, electrical and control cabinets, etc.

Construction commenced in May 2015 with a total cost now estimated at US$590 million. The grand opening is April 2018 with an estimated 3.5 million annual visitors expected. The 630ft observation wheel, which will be 50% larger than the London Eye once constructed, will provide passengers with a panoramic view of major landmark sites, including the New York Harbour, the Statue of Liberty, the Verrazano Bridge, Staten Island and the Lower Manhattan skyline.

For more information see www.newyorkwheel.com, which includes a live webcam of the construction site.

Mark Gustafson, the Company's Chief Executive Officer said: "The NYW Project continues to make fantastic progress in advancing towards its commercial opening. As the only public company with an equity stake in this US$590 million project we have secured what we believe to be a unique and extremely prospective investment opportunity for our shareholders. Following a recent tour of the New York Wheel site we can see that the changes on the ground are substantial and the vast scale of the project is becoming very apparent. The four legs, on which the largest GOW in the world will sit, have now been delivered and the next delivery will be the pedestals for the legs. Now that the above ground additions are underway, including the terminal building and the wheel itself, the next 18 months will be very exciting as we progress towards the grand opening targeted for April 2018."

This announcement contains inside information.

**ENDS**

For more information visit www.challengeracquisitions.com or enquire to:

Notes to Editors:

Challenger (LSE: CHAL) is focused on the design, engineering, project management and investment in select giant observation wheels. By combining its world-class team of technical engineering and project management skills with proven international financial expertise, the Company is ideally positioned to become a leader in the giant observation wheel sector.

The Company, which also has a US$3 million equity interest in the US$590 million New York Wheel Project, is currently focusing on appraising approximately 25 opportunities in its project pipeline where it believes that it can utilise its expertise. With a team that has worked on four of the largest giant observation wheels constructed over the last 16 years, including the iconic London Eye, the Company is building on its unique position to deliver projects and generate shareholder value.