Mainland China real estate developer Landing International Development Ltd said it will use about HK$320 million (US$41.3 million) of the HK$600 million proceeds from share subscriptions for future investment and development costs of a casino resort on South Korea’s Jeju Island (pictured).
Landing International announced in June it was partnering with casino operator Genting Singapore Plc to build a US$2.2 billion casino resort in Jeju. The partners had said the property will be modelled after Resorts World Sentosa in Singapore and will be called Resorts World Jeju.
In a filing to the Hong Kong Stock Exchange on Tuesday, the Chinese developer said that another HKD125 million will be used for the casino business.
“The board considers that the further revision on the proposed change of use of proceeds … represents a more efficient use of the group’s financial resources…” Landing International said.
This was the second proposed change in the use of proceeds of the June share subscription. Genting Singapore, through one of its subsidiaries, was one of the subscribers, paying HKD243 million for 810 million shares in the Chinese developer.
Based on a preliminary investment plan and budget, about KRW320 billion (US$312 million) will be required for the Jeju project by 2015, Landing International had said in previous filings.
Construction of Resorts World Jeju is expected to start in the third quarter of 2014, after the partners decided to postpone the ground-breaking ceremony originally scheduled for June 24.
