29 Nov

Gambling News

Mohegan obtains $1.55 billion in financing for Korean resort

Mohegan Gaming and Entertainment (MGE) has obtained $1.55 billion to finance the construction of Inspire Entertainment Resort in South Korea.

The financing comprises $575 million in equity, including MGE's $300 million investment and $275 million sourced from private global equity firms Bain Capital and MBK Partners.

A project finance credit up to $890 million has been secured by a consortium of banks, including KB Securities, NH Investment & Securities, and Hana Financial Investment. Moreover, the project's general contractor, Hanwha Engineering & Construction Corp, contributed a subordinated investment of $85.5 million.

“We possess a demonstrated history of developing and managing premier integrated entertainment resorts in North America, evidenced by our achievements in Connecticut, Las Vegas, and Niagara Falls. We anticipate extending this success internationally as the inaugural American Integrated Resort (IR) established in Korea,” stated James Gessner Jr., chairman of the Mohegan Tribe and MGE Management Board.

The financing will be allocated for the development of phase one of the resort, encompassing three five-star hotels, a 15,000-seat performance venue, and the largest convention centre in the Seoul metropolitan area. The resort is anticipated to commence operations in 2023.

The resort is anticipated to revitalise the tourism sector in South Korea in the aftermath of the new coronavirus (Covid-19) pandemic.

Bobby Soper, international president of MGE, stated, “We expect a substantial recovery in the tourism and leisure sector post-pandemic, and we are eager to enhance the Korean economy while establishing and managing a successful, cutting-edge resort.”

“I am exhilarated to witness our global vision for IR development attain this significant milestone.”

Mohegan's advancement in Korea comes after its consortium withdrew from the competition to construct and manage an integrated resort in Japan earlier this year. The tribal operator was a member of the Oshidori consortium, which exited the competition to develop a site near Nagasaki in August, citing the project's lack of viability.

In October, it divested its interest in the venture chosen to create an integrated resort in Greece to its joint venture partner, the prominent local construction firm GEK Terna.