Landing International said it has won the bid to buy the U.K.’s exclusive Les Ambassadeurs Club for GBP137 million ($208.6 million).
The property is a gambling club with currently 45 gaming tables offering a variety of games including American roulette, baccarat, blackjack, three card poker. Les Ambassadeurs Club is one of the most exclusive gambling clubs in the UK located in the heart of London’s Mayfair district at Nos. 5 and 6 Hamilton Place.
Hong Kong-listed Landing diversified into the gaming business in June last year with the acquisition of Jeju Casino in South Korea. That property has subsequently been rebranded as Landing casino.
“The Board considers now the right timing to expand and diversify its gaming operations into other markets by investing in a casino with well-defined and recognized brand name such as Les Ambassadeurs Club,” it said.
The purchase price will be paid in four tranches with GBP20.55 million payable on execution of the sale and purchase accord, GBP27.4 million on March 7, 2016, $20.55 million payable on April 7th and the final tranche of $68.5 million (after deducting estimated completion debt) on completion.
According to the information provided by the seller, for the 12 months ended 31 December 2014, the Club had a market share of approximately 36 percent of the high-end gaming market in terms of casino drop and approximately 27 percent in terms of attendance.
The gaming revenue for FY2014 achieved a year-over-year increase of approximately 167 percent mainly as a result of a few substantial losses by long term players in July and August 2014, but EBITDA had increased only by approximately 4 percent due to an increase in the provision for uncollected gaming debts during the year.
The club has “experienced a significant drop in its performance in the first 10 months of 2015.”