MGE pumps up more funding for new casino in Yeongjong Island

MGE pumps up more funding for new casino in Yeongjong Island

MGE, an integrated resort developer, has completed funding for the Inspire Entertainment Resort on Yeongjong Island. 

MGE targets completion of Yeongjong Casino in 2023

Mohegan Gaming & Entertainment, an integrated resort developer, has completed financing to develop the Inspire Entertainment Resort on Yeongjong Island in Incheon, South Korea. When finished in 2023, MGE’s Inspire Entertainment Resort will be the largest integrated resort in Northeast Asia.

The $1.55 billion in aggregate funds will be utilized to create Phase one of the IR, which is expected to result in an increase in travel to the region and a resurgence of the South Korean tourism industry following the COVID pandemic. 

The resort is now under construction in the IBC-III zone of the Incheon International Airport, Yeongjong District, and Incheon Free Economic Zone, with around 12% of construction completed. 

Three five-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 dubbed “Family Park” are all included in the Phase one resort development.

Moreover, Inspire Integrated Resort, MGE’s Korean subsidiary, now has the finance necessary to complete the project’s construction, including $575 million in equity, including $300 million from MGE and $275 million from global private equity companies Bain Capital and MBK Partners. 

In addition, the financing includes a 1.04 trillion Korean won project finance loan – approximately $890 million in US dollars – raised through a three-bank Korean consortium led by KB Securities, NH Investment & Securities, and Hana Financial Investment, with participation from Korean financial institutions and with Kookmin Bank serving as the loan’s facility agent.

Hanwha Engineering & Construction is the general contractor for the project, having offered a completion guarantee and a subordinated investment of 100 billion Korean won – approximately $85.5 million. Hanwha Hotel and Resort also participates in the project as a strategic partner and as the hotel’s operator. 

Quotes from the Press Release

Bobby Soper, MGE’s international president, added:

“We anticipate a strong recovery in the tourism and leisure industries following the pandemic, and we look forward to contributing to the Korean economy while opening and operating a successful, state-of-the-art resort. I’m overjoyed that our international vision for IR development has reached this critical stage.

James Gessner Jr., chairman of The Mohegan Tribe and MGE Management Board, said:

“With our accomplishments in Connecticut, Las Vegas, and Niagara Falls, we have a proven track record of constructing and operating top integrated entertainment resorts in North America.”

 

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.