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Lippo Centre - rents on downtrend.




Just wonders anyone had any insight in OUE Ltd? Why the shares prices just keep dropping and there is no strong re bounce despite all the REITS IPO and Special Dividends ....
(07-01-2014, 10:45 AM)Sylvan Beau Wrote: [ -> ]Just wonders anyone had any insight in OUE Ltd? Why the shares prices just keep dropping and there is no strong re bounce despite all the REITS IPO and Special Dividends ....

Lack of investors interest. REITS are no longer favoured in 2014. Most likely, OUE has to price their REIT at about 7% yield or higher to attract investor's interest. Even suckers for REITs are being cautious this year.

Trading wise, the stock has yet to break out from its down trend regression band. Each rebound bring lower highs. Unless it can break out above 2.59 (it's previous high) with significant trading volume, it might continue to trend lower and challenge its previous low of 2.34.
I dun like OUE because of their parent lippo group, they don't seem to reward shareholders much.
An example is investors holding lippo mall, often getting hit by placement or rights issue. Also their acquisitions in my view are really not so attractive.
They were late but filpped in record time with dropping of FNN bid. Who say asset traders can't win, but not necessarily shareholders.

Management is important

(26-09-2013, 12:19 AM)specuvestor Wrote: [ -> ]
(25-09-2013, 07:37 PM)Nick Wrote: [ -> ]Wow ! Possibly another REIT listing - spinning off a commercial reit.

(Not Vested)

Lippo was late to the game... but better late than never... speaks volume of what are their views
I thought LCR would be a better bet for the REIT listing...and it did make more than 50% gain in the past 1-2 months or so.
Today ex-entitlement of OUE-HT for OuE holders

Then the morning traded price of low 2.22 adjusted price was higher then the 14c drop (1/6 price of oue ht which is 14c), 2.35 - 0.14 = 2.21.

Surprisingly an announcement came just this morning:


And the price came back up near yesterday's close price of 2.35

Looks like market likes this news.

Personally i like to see the company using the divestment cash into something generative. This may provide a support and catalyst to the fall price trend and give some confidence.
Caesars Entertainment Corporation or one of its affiliated companies will be the investor in the project and operator of the casino.

The Project is expected to involve an estimated total project cost of approximately Korean Won 855 billion (approximately SGD1 billion) with total development gross floor area of over 150,000 square metres on a 4.3 hectares site.

OUE will have a significant non-controlling interest in the Project, and its participation will focus on the hotel component and convention centre of the Project.

This reminds me of Winter Sonata in Korea.....
The tune is humming in my head now.


March 17, 2014
Caesars Consortium Receives Preliminary Approval for First Internationally Branded Casino-Integrated Resort in South Korea

LAS VEGAS, March 17, 2014 /PRNewswire/ -- Caesars Entertainment Corporation (NASDAQ: CZR) today announced that LOCZ Korea Corporation, a joint venture between Caesars, Lippo Group and OUE Limited, has received preliminary approval from the South Korean Ministry of Culture, Sport and Tourism to include foreigner-only casino gaming in its planned integrated resort in Incheon, South Korea.
Preliminary rendering of a proposed internationally branded casino resort in Incheon, South Korea.

"We are grateful to the Korean government for their initial approval, paving the way for the opportunity to build and operate our first integrated resort in Korea," said Gary Loveman, Caesars Entertainment Chairman, CEO and President. "We are excited about the opportunity to expand our network and brands to Asia. Foreign visitation to South Korea has grown significantly, and we look forward to creating a world-class destination to further support Korea's economic growth and tourism goals."

Highlights for the planned integrated resort include hotels and resort amenities, live entertainment venues, a standalone convention center and a foreigners-only casino. A preliminary master plan anticipates potential future expansion to accommodate growth in the number of resort visitors.

The consortium hopes to open the Incheon integrated resort in time to welcome visitors arriving in Korea for the 2018 Olympics in Pyeongchang.

Caesars may elect to include Caesars Growth Partners, LLC in the development of the project. Caesars Growth Partners, LLC is a joint venture between Caesars Entertainment and Caesars Acquisition Company (NASDAQ: CACQ). In such an event, Caesars anticipates that Caesars Growth Partners would make the capital investment associated with the project, with Caesars Entertainment acting as the operator and sharing in the management fee associated with the project.

About Caesars Entertainment

Caesars Entertainment Corporation is the world's most geographically diversified casino-entertainment company. Since its beginning in Reno, Nevada, 75 years ago, Caesars has grown through development of new resorts, expansions and acquisitions and now operates casinos on four continents. The company's resorts operate primarily under the Caesars®, Harrah's® and Horseshoe® brand names. Caesars also owns the London Clubs International family of casinos. Caesars is focused on building loyalty and value with its guests through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. We are committed to environmental sustainability and energy conservation and recognize the importance of being a responsible steward of the environment. For more information, please visit

Forward Looking Information

This release includes "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue," "pursue," or the negative or other variations thereof or comparable terminology. In particular, they include statements relating to, among other things, future actions, new projects, strategies, future performance, the outcomes of contingencies and future financial results of Caesars and the above-referenced projects. These forward-looking statements are based on current expectations and projections about future events.

Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified, and, consequently, the actual performance of Caesars and the above-referenced projects may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in Caesars' reports filed with the Securities and Exchange Commission (including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein):

the ability of Caesars, Lippo and other potential investors in the project to reach agreement on the definitive terms governing their relationship and the project's ability to satisfy the conditions of the preliminary approval;
the impact of Caesars' significant indebtedness;
the ability to secure and the terms of any regulatory approvals, including gaming and antitrust approvals required to operate any portion of the above-referenced project and the regulatory approvals and permits necessary to complete the construction and development of the above-referenced project;
the effects of local and national economic, credit, and capital market conditions on the economy, in general, and on the gaming industry, in particular;
access to available and reasonable financing on a timely basis and the ability to comply with any conditions to funding under the financing for the above-referenced project;
changes in laws, including increased tax rates, smoking bans, regulations or accounting standards, third-party relations and approvals, and decisions, disciplines, and fines of courts, regulators, and governmental bodies, including those related to the above-referenced projects;
the effects of competition, including locations of competitors and operating and market competition;
construction factors, including delays, increased costs of labor and materials, availability of labor and materials, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, and building permit issues;
litigation outcomes and judicial and governmental body actions, including gaming legislative action, referenda, regulatory disciplinary actions, and fines and taxation;
the effects of environmental and structural building conditions relating to the above-referenced project;
access to insurance on reasonable terms for Caesars' assets and the above-referenced project; and
acts of war or terrorist incidents, severe weather conditions, uprisings, or natural disasters.

Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. Caesars disclaims any obligation to update the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this press release.
S.Korea's casino is operated by two entities.
One of them is state owned.

1. Paradise Co. (034230), Korea’s biggest casino operator. 5 outlets.

2. GRAND KOREA LEISURE CO., LTD is a Korea-based company engaged in the operation of foreigners-exclusive casinos. The Company conducts its business through operation of Seven Luck Casino, which has three branches in Korea, including Seoul Gangnam Branch, Millennium Seoul Hilton and Busan Lotte. It also has overseas offices located in Japan and Macao. The Company is a subsidiary of Korea Tourism Organization.

3 outlets in Korea, 6 outlets in Japan. Macau is a marketing office.

And this consortium is the first foreign license by Korean govt.

Lippo, Caesars get green light to build casino on South Korean island

By Joyce Lee and Narae Kim

SEOUL Tue Mar 18, 2014 12:07am EDT

(Reuters) - South Korea on Tuesday granted a preliminary casino license to a Lippo Ltd (0226.HK) and Caesars Entertainment Corp (CZR.O) venture to build a resort on Yeongjong island, as the government tries to court wealthy Chinese gamblers with an array of gambling options.

It is the first time that foreign capital has received a preliminary casino license.

Genting Singapore (GENS.SI) and Chinese property developer Landing International Development (0582.HK) have announced plans for a $2.2 billion casino resort on the southern island of Jeju but have yet to secure a preliminary license.

The first phase of the project, located minutes away from Incheon International Airport about 50 kilometers west of Seoul, will include a foreigner-only casino and at least two hotels expected to be built by 2018, the country's Ministry of Culture, Sports and Tourism said in a statement.

The first phase will cost about 746.7 billion won ($700 million), the ministry said. The entire development will cost around 2.3 trillion won and will be built over a period of nine years, the companies said in a statement in December.

A local spokesman for LOCZ Korea, the joint venture set up by Hong Kong-based Lippo and Caesars, declined immediate comment.

The South Korean government will also seek parliament's approval to ease the process of granting foreigner-only casino licenses to offshore investors, from requiring prior government approval to an open bidding process.

Although they have not formally said they will bid for a gaming license yet, Wynn (WYNN.O), MGM (MGM.N) and other major foreign firms that had previously expressed interest in building a casino in Incheon could try again when the process is eased, a government source with direct knowledge of the approval process told Reuters.

The source was not authorized to speak to media.

There are 16 foreigner-only casinos throughout South Korea, of which half are controlled by local firm Paradise Co Ltd (034230.KQ) and state-owned Grand Korea Leisure Co Ltd (GKL) (114090.KS).

Chinese visitors accounted for about 60 percent of customers at Paradise's five casinos but contributed more than 80 percent of the revenue in 2013, a spokesman for Paradise said.

The 16 casinos saw total revenues of 1.25 trillion won in 2012, with the market growing an yearly average of 15 percent in the five years up to 2012, according to the latest public data by Paradise.

Korea is not alone in the move to expand its gaming industry in Northeast Asia. Japan is moving toward legalizing casinos, after a cross-party group of lawmakers submitted a bill to that effect earlier this year. Billionaire Sheldon Adelson, chief executive of Las Vegas Sands Corp, has already expressed interest.

(Editing by Miral Fahmy and Edwina Gibbs)
like the news
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