GGRAsia – LET Group says deal to sell Hokkaido land terminated

LET Group says deal to sell Hokkaido land terminated

Nov 01, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

Hong Kong-listed LET Group Holdings Ltd, an investor in Asia-Pacific region casino projects, says a US$27.6-million deal to sell a plot of land in Hokkaido, Japan, has been terminated.

“The buyer has failed to pay the remaining balance of the purchase price of US$22.6 million … by 31 October 2023,” stated LET in a Wednesday filing.

“The buyer’s failure to purchase and acquire the property by 31 October 2023 constitutes a uncurable default under the sale and purchase agreement,” it added.

In May, LET said that one of its units had agreed to sell the Hokkaido plot of land. In July, the original suitor “assigned, transferred and delivered” to St Moritz Group Inc “all its contractual position, rights, title, obligations and interest”, and the deal was amended.

The land, comprising 220,194 square metres (2.37 million sq. feet), is close to Mount Yotei (pictured), a popular skiing and outdoor-activities location on Japan’s northernmost main island Hokkaido. 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.

In Wednesday’s filing, LET said its unit has “given a notice to the buyer to terminate the sale and purchase agreement”.

“Accordingly, the deposit – in the total sum of US$5 million – has been forfeited … and the seller has been released from any and all obligations,” it added. “Further, the seller will extinguish any and all mortgages established over the property in favour of the buyer.”

LET has been trying to implement what it termed a “cost-cutting programme”, including the sale of some non-core businesses. The net proceeds from the Hokkaido land deal were to be used to: repay the group’s outstanding liabilities; for business development; and general working capital, according to previous filings.