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LET Group revises agreement for Hokkaido lot

September 27, 2023 HongkongJapan Earnings & Filings Emerging Markets

A Hong Kong-listed investor in Asia-Pacific casino projects, LET Group Holdings Ltd., has altered the contract for the sale of a land parcel in Hokkaido, Japan. As negotiated in May, the current suitor made a third deposit payment of $2.3 million to the firm selling the property on September 20. According to the revised agreement, the price will increase to $27.6 million if the transaction is not completed by October 2, 2023. The deadline could be extended until October 31 depending on certain circumstances.

The 220,194-square-meter parcel of land is close to Mount Yotei, a popular mountain for skiing and other outdoor activities in Hokkaido. A non-gaming ski resort with 50 villas, 20 townhouses, and a hotel with more than 40 rooms was what LET Group had planned to construct on the property.

The contract was given to ST Moritz Group Inc. by the first purchaser, Nauticawt Energy Pte Ltd., in July. The only owner of the new buyer, a British Virgin Islands-based company primarily involved in investment holding, is Raymond Shao Leong Yap, a nominee of the ultimate beneficial owner of the previous buyer.

The selling of non-core assets is a part of the cost-cutting plan being carried out by LET Group. The proceeds from the sale of the Hokkaido property were intended to fund general operating expenses, pay off existing debt, and encourage business growth.

The first half of the year saw a profit for LET Group of HKD 450.6 million ($57.5 million), as opposed to a loss of HKD 387.1 million at the same point the year before. The corporation indirectly controls Suntrust Resort Holdings Inc., a developer of a casino hotel project in Manila, and Summit Ascent Holdings Ltd., which owns the Tigre de Cristal casino resort in the Russian Far East, all of which are located in the Asia-Pacific area.