Subsidiaries of two prominent developers appeared in court yesterday in a row over the construction of a $1.07 billion hotel in Tsuen Wan.
Mariner International Hotels, a subsidiary of Sino Land, is suing a Hang Lung Group construction company for $321 million, claiming a 1996 agreement for the provision of the hotel was breached.
The Court of First Instance heard that Atlas, a Hang Lung subsidiary, failed to fulfil its end of the agreement when building the hotel, which lacked basic infrastructure.
According to the agreement, a 'functioning, 438-bedroom hotel', ready to open on June 30, 1998, at Yau Kom Tau, Tsuen Wan, was promised, the court heard. Mariner claims Atlas and Hang Lung (formerly known as Hang Lung Development) failed to deliver.
Counsel for Mariner, Ronny Tong Ka-wah SC, said his client was seeking the return of its $321 million deposit and damages of $600,000.
The defendants were counter-claiming for forfeiture of the deposit and unspecified damages, the court heard.
On July 29, 1996, Mr Tong said, the plaintiff was sent an offer for the sale of a 'proposed hotel project'.