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premium blackjack LET Group’s sale of a property in Japan fell through

premium blackjack LET Group’s sale of a property in Japan fell through

premium blackjack LET Group’s sale of a property in Japan fell through because the buyer owed the remainder of the deposit of US$5 million, which was confiscated. LET Group (1383), formerly known as Suncity Group, has sold a number of properties and subsidiaries this year to repay debts. In April this year, it planned to sell an unbuilt project of villas and hotels in Hokkaido, Japan, involving a price of US$27.6 million (approximately 212 million US dollars). Hong Kong dollars), but the sale process was full of twists and turns, and the sale was ultimately unsuccessful; the reason was that the buyer failed to pay the balance before October 31 this year, so the US$5 million deposit paid would be forfeited according to the terms of the sale. The property for sale by LET Group is located in Yamada, Kuchanan Town, Hatuda Group, Hokkaido, with a total land area of ​​220,000 square meters. The group originally planned to build more than 50 villas and 20 townhouses on the property, as well as a hotel with more than 40 rooms. However, the property is still in the preliminary planning stage and no construction work has been started. The book value of the property is HK$170.6 million. After the sale, the group will record a gain of HK$35 million. The Group will use the net proceeds from the sale of approximately HK$205.6 million to repay debt, as well as general working capital and business development. The original buyer was an independent third party, Cheah Meng Fui, who had to pay in cash and paid a deposit of US$1 million on April 28. However, on July 31, the buyer was transferred and was replaced by the new buyer Raymond Shao Leong. Yap took over and paid a second deposit of US$1.7 million to the group. The transaction must be completed before August 31. However, on September 25, the sales and purchase agreement was revised, requiring the new buyer to extend the date on October 2 and complete the transaction by October 31 at the latest, otherwise it would constitute a breach of contract. The new buyer paid an additional deposit of US$2.3 million on September 20, which means a total deposit of US$5 million has been paid. As a result, the new buyer failed to pay the purchase balance of US$22.6 million (approximately HK$177 million) before the specified date, and the group has forfeited the above deposit. The Directors believe that the termination of the relevant transactions will not have any material adverse impact on the Group’s financial position and operations.

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