Japan’s Sega Sammy has reached an accord to exit a planned development in South Korea’s Busan to focus on an integrated resort project it is developing with Paradise Co.
The company announced its intention not to proceed with the commercial complex in December last year. It will transfer the plot back to Busan Metropolitan City at a transfer price of KRW94.4 billion ($83.5 million). The resulting loss has already been recorded in results in the nine months to end December.
“There is no significant change in the total amount of extraordinary loss due to the determination of conditions. The forecast of consolidated operating results for the year ending March 31, 2017 reflecting the impact from this matter is currently under detailed examination,” it said.
The $1.1 billion Paradise City will be South Korea’s first fully fledged integrated resort and is scheduled to open on April 20th.
The company is currently forecasting full-year sales to rise to 373 billion yen ($3.2 billion), from 347.9 billion yen the year earlier. It sees operating income of 28 billion yen, up from 17.6 billion.