Summit Ascent to buy land rights for resort in Japan

Summit Ascent plans to acquire land rights in Okinawa, Japan, to build an integrated resort.

Hong Kong.- Summit Ascent Holdings Ltd has announced its intention to acquire land rights in Okinawa, Japan, for the purpose of developing a resort. This strategic decision comes despite the parent company, LET Group (formerly known as Suncity Group), withdrawing its bid for a casino in the country back in 2021.

The company has allocated HK$280m ($35.77m) to purchase both LET Group’s stake in the land rights as well as the 49 per cent stake held by other shareholders. An additional HK$25m (US$3.19m) has been set aside for designing and planning the future development of the land parcel.

According to the company’s statement, the purchase of the land rights uses funds originally intended for the second phase of Summit Ascent’s Tigre de Cristal project in Russia. 

Lo Kai Bong, Summit Ascent Holdings chairman had previously said the group was “taking a conservative approach to slow down the progress of Tigre de Cristal Phase II“. 

Summit Ascent has recently completed a rights issue, generating HK$601.4m (US$76.83m). Originally intended for investment in the Russian gaming and hotel property, the net proceeds of HK$479.3m will now be used for various purposes. 

HK$280m will be allocated to the land purchase in Okinawa, while HK$25m will be dedicated to development and the remaining HK$173m (US$22.1m) for general working capital or potential investments.

Summit Ascent has shared its financial results for the year 2022. It posted a profit of HK$11.8m (US$1.5m), compared to a HK$230m (US$29.3m) loss in 2021. The figure was mainly attributable to the increase in revenue and to an impairment loss of HK$136.9m on the property, operating right and equipment.

The company’s revenue was HK$372.3m (US$47.43m) in 2022, up 40 per cent compared to HK$265.5m in 2021, predominantly attributable to the Russian mass table and electronic gaming. Gaming revenue increased by 38 per cent from the previous year to nearly HK$340.8m (US$43.43m) while revenue from the hotel business increased by 106.4 per cent to HK$17.1m.