South Korea’s fashion and retail conglomerate E-Land Group signed a deal to sell its Kensington Hotel Jeju and a neighboring land for Sangnok Hotel owned by its restaurant and resort operating unit E-Land Park to B&M Development Co. for 128 billion won ($117.5 million), according to the group on Thursday.

B&M Development is wholly owned by SK Group’s real estate developing unit SK D&D Co. E-Land will continue to be responsible for hotel operation and management as B&M Development just acquired the property.

E-Land Group expects the sale would simplify E-Land Park’s management structure and strengthen its competitiveness. The cash-strapped group plans to gradually shed its property assets and leave E-Land Park mostly for hotel and resort operation and make it leaner for an initial public offering.

E-Land Park reportedly wishes to sell Kensington Hotel in Pyeongchang and Bears Town Resort in Gyeonggi Province as well as Guilin Hotel in China it bought in 2012.

SK Gas and SK Discovery’s vice chairman Chey Chang-won hold a respective of 30.97 percent and 24 percent stake in SK D&D that operates Walkerhill Hotel through SK Networks.

By Chun Kyung-woon and Choi Mira

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