Mohegan Gaming & Entertainment Secures $1.55 Billion for South Korea Resort
Mohegan Gaming & Entertainment (MGE) has obtained $1.55 billion in financial backing to construct the Inspire Entertainment Resort in South Korea.
The financing comprises $575 million in equity, which encompasses a $300 million investment from MGE and $275 million raised through global private equity companies Bain Capital and MBK Partners. Moreover, $890 million in project financing loans were secured through a group of banks including KB Securities, NH Investment & Securities, and Hanwha Investment & Securities. In addition, Hanwha Engineering & Construction, the project’s primary contractor, provided an $85.5 million subordinate investment.
“We possess a proven history of developing and operating top-tier integrated entertainment destinations in North America, with triumphs in Connecticut, Las Vegas, and Niagara Falls, and we anticipate bringing that success abroad as the inaugural American integrated resort (IR) in South Korea,” stated James Gessner II, Chairman of the Mohegan Tribe and Chairman of the MGE Board of Managers.
The financing will be utilized to develop the initial stage of the resort, which will encompass three five-star hotels, a 15,000-seat performance venue, and the largest convention center in the Seoul metropolitan area. The resort is anticipated to commence operations in 2023.
The travel and recreation sector in South Korea is hoping this new resort will help bring it back to life after the COVID-19 outbreak.
Bobby Soper, the head of MGE International, stated, “We expect a strong recovery in the travel and leisure industry after the pandemic and we are excited to help the Korean economy while running a successful, modern resort.”
“I am delighted to see this important step in our global vision for integrated resort development.”
Mohegan’s progress in South Korea comes after the tribe withdrew from a bid to construct and operate an integrated resort in Japan earlier this year. The tribal operator was part of the Oshidori group, which dropped out of the competition to build a project in Nagasaki in August, citing the project’s unsuitability.
The company also sold its share in a project to build an integrated resort in Greece to its partner and local construction giant GEK Terna in October.
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