April 25, 2024

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[THE INVESTOR] Cash-strapped retail giant E-Land Group plans to sell two of its hotels and a ski resort in Korea in an effort to secure cash before setting up a holding firm, the Korea Economic Daily reported on Aug. 8.

The facilities put up for sale include: Kensington Jeju Hotel in the resort island, Kensington Flora Hotel in PyeongChang, Gangwon Province, and Bears Town Ski Resort in Pocheon, Gyeonggi Province. 

EY Han Young, one of the nation’s top three accounting firms, has reportedly been named the deal manager.

E-Land has been investing heavily in acquiring leisure facilities in recent years under its hotel chain brand Kensington. Despite initial high expectations, the leisure business suffered an operating loss of 29.8 billion won (US$26.40 million) last year. In the first quarter this year alone, its net loss reached 16.8 billion won.

With the planned asset sale, E-Land hopes to further reduce its debts. The group sold off its lifestyle brand Modern House for 600 billion won early this year. The group also made a capital increase worth 300 billion won for E-Land World, a subsidiary it hopes to turn into a holding firm later this year.

By Alex Lee (alexlee@heraldcorp.com)