US tribal gaming operator Mohegan Gaming & Entertainment has acquired the final piece of financing to complete development of its Korean integrated resort, Inspire Entertainment Resort, in Incheon.
The company said overnight that it now has aggregate funding of US$1.55 billion to be used in the Phase 1 development of Inspire, which it expects to open its doors in 2023.
“We have a proven track record in developing and operating leading 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,” said James Gessner Jr, Chairman of The Mohegan Tribe and Mohegan Management Board.
According to details supplied by Mohegan, the US$1.55 billion funding pie comprises a total of US$575 million in equity combining Mohegan’s US$300 million investment and US$275 million raised through global private equity firms, a KRW1.04 trillion (US$890 million) finance loan from raised through a three-bank Korean consortium – KB Securities, NH Investment & Securities and Hana Financial Investment – and KRW100 billion (US$85.5 million from the General Contractor, Hanwha Engineering & Construction Corp.
Hanwha Hotel and Resort Co Ltd is also participating as a strategic partner of the project and as the hotel operator.
Phase 1 development is currently at around 12% but is expected to accelerate with the final piece of funding in place. When complete, Inspire Entertainment Resort will feature three 5-star hotel towers, a 15,000-seat multifunctional professional performance arena, a foreigner-only casino, the largest convention facility in the Seoul metropolitan area, retail, a year-round indoor water dome experience and a large outdoor thematic space known as the “Family Park”.
“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,” said Mohegan’s International President, Bobby Soper.
“I’m thrilled to see our international vision for IR development reach this important milestone.”
