Polytec Asset Holdings Limited said yesterday it was of the view that its Macau-registered affiliate Polytex Import and Export Company Ltd. “has strong legal grounds and arguments to seek compensation” from the Macau government “for losses and damages” concerning its mothballed Pearl Horizon property project.

Polytec made the announcement in a statement to the Hong Kong Stock Exchange.

The statement came one day after Macau’s Court of Final Appeal (TUI) had turned down an appeal by Polytex against the local government’s decision in January 2016 to annul the Pearl Horizon project’s provisional land concession because the developer failed to develop it within 25 years, the maximum period allowed by the Land Law.