Respected investor seeks damages from Treasure Island Project Partners alleging its ownership improperly redirected to Chinese government investment fund
SAN FRANCISCO, Oct. 25, 2023 /PRNewswire/ — A California court ruled that Kenwood Investments LLC can proceed with its fraud and breach of fiduciary duties suit against its partners Stockbridge Capital Group and developer Wilson Meany in the multi-billion-dollar redevelopment of Treasure Island in the heart of the San Francisco Bay.
The Kenwood complaint alleges that Stockbridge and Wilson Meany, investors with Kenwood in the project, conspired to divert profits that belong to Kenwood to an investment fund controlled by the Chinese government.
San Francisco Superior Court Judge Richard B. Ulmer Jr. issued orders on Oct. 18 allowing Sonoma, California-based Kenwood to proceed with the case and seek punitive damages, denying Stockbridge and Wilson Meany’s attempt to get the case dismissed on technical grounds.
Kenwood brought Stockbridge and Wilson Meany into the Treasure Island Community Development project in 2005. That effort has resulted in one of the most complicated land entitlements and development projects to take place in a major U.S. city. The plan, which is underway, calls for 8,000 new residential units, 250,000-square-feet of retail space, 2,000 permanent jobs, up to 350 new hotel rooms, public parks, and 300+ acres of open space, as well as approximately 168 marina slips, new ferry terminal, attracting as many as 13,000 residents.
Kenwood’s suit alleges Stockbridge and Wilson Meany have repeatedly and knowingly misled Kenwood regarding the nature of their outside transactions and dealings, notably by partnering with CITIC, an investor owned by China’s largest sovereign wealth fund and alleged to be a functioning arm of the Chinese government and its geopolitical interests.
CITIC now accounts for over 97% of Stockbridge’s investment fund and thus has effective control over the Treasure Island project – yet there has been little public scrutiny or disclosure of CITIC’s involvement or potential role along Treasure Island’s strategic waterfront.
The Court’s order found that Kenwood’s complaint presented viable claims based on the facts alleged that Stockbridge and Wilson Meany “diverted profits from Kenwood; made capital contributions to dilute Kenwood’s interests; refused to provide Kenwood with books and records; and initiated an improper buy-sell offer to Kenwood,” according to Kenwood’s lawsuit.
Stockbridge and Wilson Meany are also purported to have hidden books and records and to have violated various obligations to keep Kenwood apprised of progress on the project, but instead worked to undermine Kenwood’s interest, according to Kenwood’s lawsuit.
“This is not just about the monies and fair dealings that are owed to Kenwood,” Hagey said. “This is about public trust and transparency concerning one of the most important developments in California, in a location with strategic national importance.” The U.S. Coast Guard Department of Homeland Security facility is located on the adjacent Yerba Buena Island.
Kenwood is currently conducting discovery of defendants Stockbridge and Wilson Meany and various third parties, with an anticipated trial date in 2024.
About Kenwood Investments
Kenwood Investments, LLC, was founded by Darius Anderson in 2000. The company’s investment focus for more than 15 years has been on real estate development, land entitlement, media, tourism and hospitality projects. Kenwood Investments has a track record of entitling and developing extraordinary projects that greatly enhance the communities in which its projects are built or operated and has specialized during its tenure in projects facing complex hurdles of public policy, land entitlement and pre-venture capital funding. Based in Sonoma, California, Kenwood Investments consists of a team of highly talented individuals who have worked with Darius Anderson for years. For more information, go to https://kenwoodinvestments.com.
Contact: Sam Singer
Singer Associates Public Relations San Francisco
SOURCE Kenwood Investments
Originally published at https://www.prnewswire.com/news-releases/judge-rules-kenwood-investments-can-proceed-with-fraud-lawsuit-against-stockbridge-capital-group-and-wilson-meany-301966667.html
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