Alpensia, 2018 Winter Olympics venue, taps a buyer this week in a fifth go

Alpensia Resort

Alpensia Resort, a 2018 Winter Olympics venue in Pyeongchang, Gangwon Province that had to be bailed out multiple times, weighs potential buyers for the fifth time this week, but whether a sale may finally go through remains uncertain due to questionable financial potentials of the candidates.

The Gangwondo Development Corp., which owns and operates Alpensia Resort, announced on Monday that two local property developers—KH Gangwon Development and a special purpose vehicle whose name has not been disclosed—have submitted final offers in the fifth tender for the resort.

KH Gangwon Development is a subsidiary of electronics parts and lighting manufacturer KH Feelux Co., which acquired Grand Hyatt Seoul, one of Seoul¡¯s most luxurious hotels, in December 2019 in a consortium led by Hong Kong-based investment firm PAG and Seoul-based Inmark Asset Management.

Earlier suitors like Sae-A Trading, Daebang Construction, and Dongwon withdrew.

The public entity may not come to a conclusion this time as well as the two prospective buyers are said to be lacking financing for the buyout estimated at around 700 billion won ($618.1 million), industry sources say.

Gangwondo Development Corp. had arranged an auction four times but could not strike a deal due to uncertainties over the resort business, weak financial structure and pricey terms.

The resort was built at 1.6 trillion won and is saddled with debts upon failing to sell the condo units after the Winter Olympics in 2018. Its outstanding debt stands at over 700 billion won that cost over 40 million won in daily interest.

Alpensia¡¯s ski slope failed to steal away skiers from nearby Yongpyong Ski Resort, but its golf village estate has been benefiting from a fresh golf boom in Korea.

The preferred bidder will be named on Thursday. After a two-month of due diligence and negotiations, a final contract will be concluded on Aug. 23.

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