Landing International Development Ltd, a casino investor listed in Hong Kong, has agreed to the sale of its Les Ambassadeurs Casino. The casino, an upmarket gaming location based in London is being sold for over US$320 million. The sale is designed to boost the company’s access to capital. The same funds will be then forwarded to the development of the Jeju Shinhwa World located on Jeju Island in South Korea.
The company claims that the deal will provide them with 500 million in Hong Kong dollars. Once the taxes and transaction costs are deducted, the company still expects to make a 30-35% return on their initial investment. The same will result in a deal that will both provide shareholders with profits and further develop new projects
Media reports show that Paul Suen Cho Hung is the buyer of the Les Ambassadeurs Casino. The same man is a Hong Kong investor who last year acquired Birmingham City FC.
Les Ambassadeurs casino operates under a casino license issued by the City of Westminster in 2005, following the rules of the UK Gambling Act. The venue offers 45 gaming tables that cover a range of games, including, baccarat, American roulette, three-card poker, and blackjack. In April 2016, Landing bought the casino for around HK$1.48 billion.
Recently, Les Ambassadeurs posted a sum of $54.8 million in revenue for the first two-quarters of 2017. According to Landing Company, the casino performed well since they acquired it, but its directors believe that the divestment opportunity is in line with their current business focus. The statement also underlined that the deal is a good return on the shareholders’ investment.
South Korea and Landing’s Casino Plans
The Landing Company stated that the sale of Les Ambassadeurs shows a strong turn towards the Southeast Asia and its emerging markets. Last week, the company, which is also active as a real estate investor in mainland China, revealed that it will need at an additional US$1 billion to finish their Jeju Shinhwa World. The sum will go over the investment made so far by Landing. The company’s representatives met with President Rodrigo Duterte of Philippine to discuss the potential for a development of an integrated resort and theme park in the country.
A company press release did not reference any potential location for the same park development or whether or not it would include a casino. According to the Dr. Yang Zhihui, Executive Director and Chairman of Landing, Southeast Asian entertainment and leisure markets offer high potentials and many business opportunities. The region’s vibrant economy created a strong tourist demand for high-quality entertainment and leisure experience found in world-class destinations.
This is the reason why Landing is looking to diversify its portfolio into the Southeast Asia emerging markets. Here, the company plans to invest in projects that possess a high potential for growth while offering a generally favorable investment environment. The same set of opportunities includes the Philippines, as Landing seeks to establish itself there and in other regional spots as a renewed entertainment and leisure brand.
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