Sega Sammy announced it has concluded the cancellation of its resort project in Busan by setting an agreement to transfer the land where the facility was meant to be located. The Tokyo-based pachinko operator said the main reason behind the move is to concentrate resources on Paradise City integrated resort in Incheon, which will open on April 20.
“It is hereby notified that SEGA Sammy Holdings Inc. has reached an agreement with Busan Metropolitan City South Korea regarding the details of a transfer of acquired land as a result of negotiation on its return, of which proposal for was announced in ‘Notice of Discontinuance of Development of Complex in Busan Metropolitan City, South Korea and Recording of Extraordinary Loss’ on December 22, 2016, as described below,” stated the company.
The agreement reached by Sega Sammy with local authorities to transfer to the Busan Metropolitan City land previously acquired in 2013, involves a KR$94.4bn (US$83.5m) transfer price. The Japanese company had bought the lands for KR$119.3bn.
The transfer its been made “in order to concentrate management resources on Paradise City, the IR (integrated resort) business positioned as a growth business, and to further improve investment efficiency. The Company will continue to advance the development of Paradise City, an IR facility under collaboration with South Korea’s Paradise Group, toward its opening in April 2017, and continue preparing for a full-fledged entry into IR business.”