OUE exits project to build South Korea's first foreign-owned integrated resort

PROPERTY developer OUE Limited on Friday announced its exit from a proposed integrated resort project in Incheon, South Korea.

It is selling its 40 per cent investment in the project to a joint venture company formed by Caesars Entertainment Corporation and Guangzhou R&F Properties Co for up to US$22.9 million in cash. Of the purchase price, US$2.5 million is a contingent consideration.

OUE had announced on March 18, 2014 that it had formed a consortium with Caesars and Lippo Limited to develop the first foreign-owned integrated resort in South Korea, expected to be ready in time for the 2018 Winter Olympics.

In line with its exit from the project, OUE is also selling its right to acquire a plot of land adjacent to where the resort is to be constructed. The buyer is R&F, which is acquiring the right for US$2 million, contingent to certain considerations.