E-Land sells W128b assets to SK affiliate B&M Development
[THE INVESTOR] Korean retail giant E-Land Group announced Feb. 9 that the company has signed a deal to sell assets worth 128 billion won (US$ 117.32 million) to SK affiliate B&M Development.
Kensington Jeju Hotel and its plot of land will be sold at 117 billion won. A site that was allotted for building Sangrok Hotel, located near Kensington Jeju Hotel, will also be handed over to the SK affiliate for 11 billion won.
“The deal was a part of our plans to improve our financial stability by decreasing the debt ratio,” a company official said in a statement. E-land reportedly lowered its debt ratio to 200 percent last year and plans to decrease the ratio to 150 by the end of this year.
Even after selling its Kensington Jeju Hotel, E-Land will remain an operator of the hotel. E-Land added that in the long term, it planned to refocus its hotel and resort division onto providing only services, selling its remaining properties. E-Land Group currently operates eight hotels and 14 resorts worldwide.
Besides selling its properties, E-Land Group has been seeking funds to improve its financial stability and turn into a holding company structure. Most recently, E-Land attracted a fund worth 100 billion won from Singapore’s sovereign wealth fund GIC.
Moreover, Meritz Financial Group in January also decided to invest 300 billion won in E-Land as it was joining an investment consortium led by Korea’s Keystone Private Equity.
By Song Seung-hyun (email@example.com)