KH Group, "We Will Create a World-Class Luxury Resort"
Gangwon-do, "Full Support to Establish as a Local Company"
[Asia Economy Reporter Ra Young-chul] Gangwon Province announced on the 22nd that "KH Group has taken its first step toward regional development in Gangwon Province through the acquisition of Pyeongchang Alpensia Resort."
According to the province, KH Gangwon Development, a special purpose corporation of KH Group, completed the payment of 730.8 billion KRW to Gangwon Development Corporation for the sale of Alpensia Resort on the 18th and legally transferred ownership rights.
Previously, KH Gangwon Development signed a transfer contract for Alpensia with Gangwon Development Corporation at the end of August last year.
Alpensia is a facility developed by Gangwon Province since 2004 to attract the Pyeongchang Winter Olympics, equipped with hotels, condos, a water park, ski slopes, and golf courses.
In this sale, KH Gangwon Development excluded the luxury hotels (InterContinental and Holiday Inn), condos, water park, ski slopes, a members-only golf course (27 holes), a public golf course (18 holes), ski jump tower, and biathlon and cross-country skiing venues.
Going forward, KH Gangwon Development plans to reinvent Alpensia Resort as the world’s best global resort destination befitting South Korea’s national prestige.
In particular, KH Group aims to maximize synergy effects by leveraging the business expertise of its affiliate, the comprehensive construction company KH E&T, in real estate development.
KH E&T acquired a newly constructed office building (10,570 pyeong) in Madrid, Spain, for 240.6 billion KRW and signed a 15-year lease contract with ING Bank, achieving an annual return of 10%.
Additionally, it has invested in the NH Investment & Securities building in Yeouido, generating high returns, and KH Philux also profited from the Sangji Kyleum luxury villa housing project in Dogok-dong, Seoul.
In 2019, KH Group acquired and operated the Grand Hyatt Hotel Seoul, and last year sold the parking lot site of the Grand Hyatt Hotel Seoul for 200 billion KRW.
Its affiliate, the comprehensive entertainment company IHQ, plans to increase the value of Alpensia Resort as a global resort destination visited by people worldwide by expanding its self-produced content and utilizing Alpensia Resort in entertainment and drama productions.
Meanwhile, it is reported that an executive from IHQ is a strong candidate for the new CEO of Alpensia Resort.
Lee Man-hee, president of Gangwon Development Corporation, said, "Since the sale was difficult to complete, we will provide full support, including operational know-how and personnel, so that KH can establish itself as a local company."
Son Kyung-ja, president of the Alpensia Shopping District Association, said, "Most shops have struggled to operate since tourists stopped coming after the Pyeongchang Winter Olympics," adding, "Now is the time to put aside political disputes and support the new beginning of Alpensia Resort."
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