Lippo land deal on South Korean casino project

The consortium of the subsidiaries of Lippo Limited and U.S. gaming operator Caesars Entertainment Corporation obtained a conditional deal to acquire land for developing a casino project in Incheon, South Korea at a price of some US$95.9 million (HK$734 million) on Monday, after being given the green light by the Korean authorities on the project in March.
Hong Kong-listed Lippo Limited informed Hong Kong Stock Exchange on Monday evening after trading hours that the consortium which its wholly-owned Lippo Worldwide is under had entered a conditional land sale and purchase agreement with the vendor, MIDAN City Development Co., Ltd.
The consortium, named LOCZ Korea Corp, comprises Caesars Korea and OUE International as well. Meanwhile, the parent company of OUE International and the vendor company MIDAN are also partly owned by Lippo Limited, at 38.5 per cent and 55 per cent, respectively.
The land that the consortium is to purchase occupies some 89,170 square metres.
However, the Lippo filing shows that the land includes two phases. Only Lippo Worldwide and OUE International have the right to jointly nominate an entity to purchase and obtain the title to the Phase 2 land.
In fact, the consortium was only approved by the Ministry of Culture, Sports and Tourism of the Republic for the casino project in March on re-application. The company is allowed to design, develop, construct and own the project in the East Asian country.
LOCZ Korea Corp is not the first joint venture eyeing the gaming businesses in South Korea. Paradise City, invested in by South Korean gaming operator Paradise Co Ltd as well as Japanese Sega Sammly Holding Inc, is scheduled to kick off in 2017.