Integrated resort developer Mohegan Gaming & Entertainment (MGE) on Monday said it has successfully closed financing to develop the INSPIRE Entertainment Resort on Yeongjong Island in Incheon, South Korea.
The company said aggregate funding of $1.55bn will be used by INSPIRE Integrated Resort Co., Ltd., MGE's wholly-owned Korean subsidiary, in Phase 1 of development for the new resort.
The project is set to open its doors in 2023. MGE said in a statement it expects the resort to generate a spike in visitation to the region and a revival of the South Korean tourism industry as pandemic restrictions ease.
Funding includes a total of $575m in equity combining MGE's $300m investment and $275m raised through global private equity firms, Bain Capital and MBK Partners, and a project finance loan of 1.04 trillion Korean won (US$890m) raised through a three-bank Korean consortium including KB Securities, NH Investment & Securities and Hana Financial Investment, with the participation of Korean financial institutions and with Kookmin Bank Co., Ltd. as facility agent to the loan.
Hanwha Engineering & Construction Corp. is the general contractor for the project, which has provided a completion guarantee as well as a subordinated investment to the project in the amount of 100 billion Korean won (US$85.5m).
Hanwha Hotel and Resort Co., Ltd., also is participating as a strategic partner of the project and as the hotel operator.
MGE said the development of the INSPIRE resort is underway within the IBC-III region of the Incheon International Airport, Yeongjong District, Incheon Free Economic Zone, with the current construction completion progress at approximately 12%.
According to the company, INSPIRE will be the largest integrated resort in Northeast Asia once completed.
The Phase 1 resort development includes three 5-star hotel towers, a 15,000-seat multifunctional professional performance arena, a foreigners only casino, the largest convention facility in the Seoul metropolitan area, a world class retail offering, a year-round indoor water dome experience and a large outdoor thematic space, known as the "Family Park."
“We have a proven track record in developing and operating integrated entertainment resorts in North America with our successes in Connecticut, Las Vegas and Niagara Falls, and we look forward to taking this success abroad as the first American IR launched in Korea,” James Gessner Jr., chairman of the Mohegan Tribe and MGE management board, said in a statement.
Bobby Soper, international president for MGE, added: “We anticipate a significant rebound in the tourism and leisure industry following the pandemic, and we look forward to contributing to the Korean economy while at the same time opening and operating a successful, state-of-the-art resort. I am thrilled to see our international vision for IR development reach this important milestone.”
Mohegan Gaming & Entertainment develops and operates integrated entertainment resorts, including Mohegan Sun in Uncasville, Connecticut, INSPIRE in Incheon, South Korea and Niagara Casinos in Niagara Falls, Canada. MGE also is owner, developer and/or manager of other integrated entertainment resorts throughout the United States, including those in New Jersey, Washington, Pennsylvania and Las Vegas, Nevada.
MGE is owner and operator of Connecticut Sun, a professional basketball team in the WNBA.
