The funding for the casino-games project amounts to $575 million in equity. This includes a $300 million investment from MGE, as well as $275 million raised through private equity firms Bain Capital and MBK Partners. Additionally, a project finance loan of $890 million has been secured through a consortium of banks including KB Securities, NH Investment & Securities, and Hana Financial Investment. The project also received a subordinated investment of $85.5 million from general contractor Hanwha Engineering & Construction Corp.
James Gessner Jr, chairman of the Mohegan Tribe and MGE Management Board, expressed confidence in their ability to develop and operate top-notch entertainment resorts. Their success in Connecticut, Las Vegas, and Niagara Falls has positioned them as a leader in the industry. They are excited to extend their success to Korea with the launch of the first American Integrated Resort (IR) in the country.
The funds will be used to develop phase one of the resort, which will feature three five-star hotels, a 15,000 seat performance facility, and the largest convention center in Seoul’s metropolitan area. The anticipated opening of the resort is in 2023. The aim is for the resort to revitalize the tourism industry in South Korea, which has been adversely affected by the Covid-19 pandemic.
Bobby Soper, international president for MGE, believes that the tourism and leisure industry will experience a significant rebound after the pandemic. MGE aims to contribute to the Korean economy while operating a successful and state-of-the-art resort. This represents a significant milestone in their international vision for integrated resort development.
Mohegan Tribe’s foray into Korea follows their withdrawal from a project in Japan earlier this year. They were part of the Oshidori consortium, which pulled out of the competition to build a property in Nagasaki. They deemed the project no longer feasible. Mohegan Tribe also sold their stake in a business selected to build an integrated resort in Greece to their joint venture partner and local construction giant GEK Terna.
