Chinese tries to hold onto domestic dollars
Hong Kong real estate developer Lippo Ltd. has cited the “current outlook for the gaming industry in North Asia and the volatility of the global economy” as reasons it wants to withdraw from a casino project in South Korea.
Lippo’s partner in the plan near Incheon International Airport is U.S.-based gaming firm Caesars Entertainment Corp. The planned resort, which includes a foreigners-only casino, pinned some of its revenue hopes on drawing Mainland Chinese gamblers. According to GGRAsia, those hopes may have been dimmed by reports that China might be trying to keep Chinese currency at home rather than seeing it flow to Asian casino destinations.
Lippo’s exit agreement was supposed to have been resolved by November 2016, but “the negotiations are continuing, and the outcome is dependent upon a separate set of negotiations between Caesars Korea and another investor,” said the company’s interim report.
The alternative investor has been identified as R&F Properties Co. Ltd., a subsidiary of mainland China real estate developer Guangzhou R&F Properties Co. Ltd. In a December 6 filing, Lippo said it continues to negotiate the disposal of its stake in LOCZ Korea Corp., the firm responsible for the development, construction and operation of the proposed casino resort.
The other partners in the LOCZ Korea consortium include Caesars Korea Holding Co. LLC, which is wholly owned by Caesars Entertainment, and OUE International Holdings Pte Ltd., wholly owned by Singapore real estate firm OUE Ltd. Lippo is the latter’s controlling shareholder.
