Mohegan Gaming secures all funding for the project in South Korea
Mohegan Gaming & Entertainment, the owner of the Mohegan Tribe gaming assets, has set off for the races in South Korea.
MGE has lined up the last of $ 1.55 billion in funding for the first phase of an ambitious entertainment project at the country’s main international airport, according to The Day newspaper. The company is bringing in $ 300 million, while Bain Capital and MBK Partners have raised $ 275 million and three Korean banks and a handful of other financiers are lending MGE $ 890 million.
General contractor Hanwha Engineering & Construction Corp. invested $ 85.5 million in the project and guaranteed its completion.
The first phase of the Inspire project will include three hotel towers, a 15,000-seat arena, a foreigners-only casino, Seoul’s largest convention center, retailers, a so-called indoor water dome and an outdoor space, according to The Day. Hanwha Hotel and Resort Co. is a hotel sponsor.
The project is under construction adjacent to Incheon International Airport on Incheon Island and is approximately 12% complete.
MGE plans to open the complex by 2023, a year later than planned. The South Korean government licensed MGE for the project in 2016.
MGE’s best-known property is the Mohegan Sun Casino in Connecticut. It operates five other casinos, including the Resorts Casino Hotel in Atlantic City, the Mohegan Sun Pocono outside of Wilkes-Barre, Pa. And ilani in La Center, WA. The Mohegan Tribe also owns the Connecticut Sun WNBA basketball team.
While the pandemic has hit the gaming industry hard, businesses are still buying casinos. Blackstone Group sold the Cosmopolitan of Las Vegas in September for $ 5.6 billion, more than three times what it paid for seven years ago.
Vici Properties bought MGM Growth Properties for $ 17 billion this summer. Bally’s took to Las Vegas this spring with the $ 150 million purchase of the Tropicana Hotel & Casino.
[The Day] – Dennis Lynch