LET Group terminates Hokkaido land sale

LET Group Holdings says the buyer failed to make payment by the deadline.

Japan.- LET Group Holdings, the controlling shareholder of Suntrust Resort Holdings, has announced the termination of a US$27.6m land sale in Hokkaido due to the buyer’s failure to pay a remaining US$22.6m by October 31.

In a filing made on Wednesday (November 1), LET stated, “The buyer’s failure to purchase and acquire the property by 31 October 2023 constitutes an uncurable default under the sale and purchase agreement.”

The 220,194-square-metre plot is situated near Mount Yotei, a popular skiing and outdoor activities location on Japan’s northernmost main island. LET initially intended to develop a non-gaming ski resort on the land, which would have featured 50 villas, 20 townhouses and a hotel with over 40 rooms.

In the same filing, LET announced that its unit had given notice to terminate the sale and purchase agreement. As a result, the US$5m deposit has been forfeited and the seller has been released from all obligations. The company said all mortgages established over the property in favour of the buyer will be cancelled.

Last month, the company concluded the sale of its mainland Chinese mall operator Dongyang Xinguang Pacific Industrial for RMB 20m (US$2.8m). This decision, resulting in a financial loss, was seen as a necessary step to channel resources toward the development of existing ventures. The mall operator has been making a loss since May 2022.