Chinese property developer Landing International is expanding on the large-scale investment position it has taken in South Korean gaming with plans to buy an existing casino in the city hosting the 2018 Winter Olympics.
Landing, which is partnering with two listed companies of the Genting Group on resort casinos on the popular island of Jeju, says it is will spend US$112 million to acquire the Alpensia Casino at the Holiday Inn in Pyeongchang in the northeast of the country.
Landing pointed to the area’s popularity among skiers and other outdoor leisure-seekers and said it considers the acquisition “a valuable opportunity for the group to broaden its market share in the casino industry in Korea and to diversify its investments from Jeju Island to Gangwon-do Province.”
Gangwon-do hosts the only casino in South Korea open to Korean nationals, Kangwon Land, which also is the country’s largest and most lucrative gambling venue.
Landing said it plans to expand the Alpensia, one of 16 casinos open only to foreigners, to 70 tables. The venue also houses 42 machine games.
Landing is in a 50-50 joint venture with Genting Hong Kong to acquire an existing casino inside the Hyatt Regency Jeju for an investment of $117.2 million. One of eight licensees on the island, the property is under renovation and is expected to reopen in January with around 30 gaming tables and 16 slot machines.
The company also is teaming up with Genting Singapore to seek approval from Jeju’s government for a much larger greenfield development that envisions an array of gaming, hotel and leisure attractions complemented by a residential component and possibly facilities to accommodate well-heeled medical tourists. The resort is eyeing a Q2 2015 groundbreaking with construction to continue in phases over several years at a final price tag of US$2.2 billion.
The South Korean government is actively courting tourists from China, the major contributors to the foreigners-only market, to boost the economy. Two large-scale resort casinos planned by Paradise Group, the country’s leading foreigners-only operator, and Caesars Entertainment have been approved for a special economic zone surrounding the international airport at Incheon near Seoul. Chinese passport holders also enjoy visa-free access to Jeju, and the government recently expanded the policy to Yangyang International Airport in Gangwon-do, which is served by charter flights from 12 cities in China, including Beijing, Shanghai and Guangzhou.
RelatedPosts
