Hong Kong-listed LET Group Holdings Ltd, an investor in a number of Asia-Pacific region casino projects, says one of its units has agreed to sell a plot of land in Hokkaido, Japan, for a total consideration of US$27.0 million.
The buyer is a Singapore-incorporated firm, Nauticawt Energy Pte Ltd, controlled by Malaysian investor Cheah Meng Fui, according to a Friday filing to the Hong Kong bourse.
The land, with a total area of 220,194 square metres (2.37 million sq. feet) is close to Mount Yotei, a popular skiing and outdoor-activities location on Japan’s northernmost main island Hokkaido (pictured). The group originally intended to develop on the land a non-gaming ski resort, featuring 50 villas, 20 townhouses and a hotel with over 40 rooms.
“As at the date of this announcement, the property is still under preliminary planning stage and no construction work has been commenced,” stated LET Group.
The company said it expected to receive pre-tax net proceeds of about US$26.2 million, with net proceeds to be used to: repay the group’s outstanding liabilities; for business development; and general working capital.
LET Group said it has been implementing a “cost-cutting programme”, and as part of that drive non-core businesses “have been and would continue to be sold”.
“The group would continue to offload assets to aid survival by focusing on the most profitable business segments only,” stated the casino investor.
“The group has planned and negotiated for the disposal of certain of the group’s non-core assets, including but not limited to parcels of land in Japan,” including the land plot in Hokkaido, it added.
LET Group – formerly known as Suncity Group Holdings Ltd – has had, in the course of its business, interest in a number of casino projects in the Asia-Pacific region, including in Vietnam, the Philippines and Russia.
In March, the Hong Kong-listed firm reported an annual loss attributable to shareholders of just under HKD408.8 million (US$52.1 million) in 2022, versus a loss amounting to approximately HKD527.5 million in the prior year.
In its annual report for 2022, published last week, LET Group said it was seeking financing to complete the development of a casino hotel at the Westside City project in Manila, the Philippine capital.
