MGM’s Osaka IR obtains €3.1 billion loan?

Jenny Ortiz April 25, 2024

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MGM’s Osaka IR obtains €3.1 billion loan?

The joint venture entity overseeing the development of Japan’s inaugural integrated resort (IR) in Osaka, known as Osaka IR Corporation, has successfully secured a substantial loan agreement with a consortium of banks. The €3.1 billion loan agreement represents a significant step forward for the ambitious project.

Osaka IR Corporation, a partnership between US-based casino giant MGM Resorts International and local partner ORIX Corporation, will collaborate with MUFG Bank Ltd and Mitsui Banking Corporation on what has been hailed as Japan’s largest co-financing arrangement by a group of banks. Additionally, two companies associated with Hankyu Hanshin Holdings have also committed to investment in the project.

Landmark investment

Under an implementation agreement sanctioned by Japan’s central government, the initial investment in the Osaka IR is projected to reach around JPY1.27 trillion (€7.62 billion). The resort’s anticipated opening is slated for 2030, marking a transformative milestone for Japan’s gaming and hospitality industry.

Progress and preparatory works

Preparatory land works on the Yumeshima Island site commenced in December, with measures to prevent liquefaction and strengthen the foundation underway. These efforts, costing JPY25.5 billion (€161 million), are expected to continue throughout the upcoming Osaka Expo in 2025, with completion scheduled by April 2027.

Commitment to expo sponsorship

MGM’s commitment extends beyond the integrated resort project, with the company sponsoring the United States Pavilion at the 2025 World Expo in Osaka. Groundbreaking ceremonies for the pavilion were recently held, showcasing MGM’s dedication to fostering international partnerships and cultural exchange.

Vision for the integrated resort

Upon completion in 2030, MGM’s Osaka integrated resort is poised to become a premier destination, featuring Japan’s sole legal casino, 2,500 hotel rooms spanning three renowned brands, 730,000 square feet of MICE (Meetings, Incentives, Conferences, and Exhibitions) space, and tourism facilities showcasing the vibrant culture and attractions of Osaka and Japan at large.

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