Mohegan Gaming & Entertainment (MGE) has obtained a significant sum of $1.55 billion in financing to construct the Inspire Entertainment Resort in South Korea.
This financial backing encompasses $575 million in equity, which comprises $300 million from MGE itself and an additional $275 million raised through private equity firms Bain Capital and MBK Partners.
Moreover, MGE has secured an $890 million project financing loan from a group of financial institutions including KB Securities, NH Investment & Securities, and Hanwha Investment Bank. Additionally, the project’s primary builder, Hanwha Engineering & Construction, has contributed a $85.5 million subordinate investment.
“We possess extensive experience in developing and managing top-tier integrated entertainment destinations in North America, boasting successful ventures in Connecticut, Las Vegas, and Niagara Falls. We are excited to bring this expertise overseas as the inaugural American integrated resort (IR) in South Korea,” stated James Gessner Jr., Chairman of the Mohegan Tribe and Chairman of the MGE Board of Managers.
The acquired funding will be utilized for the initial phase of construction of the resort, which will feature three five-star hotels, a performance venue with a capacity of 15,000 seats, and the largest convention center within the Seoul metropolitan region. The resort is anticipated to officially open its doors in 2023.
The South Korean tourism sector is hoping this resort will aid in reviving the industry following the effects of the COVID-19 outbreak.
“We expect a robust recovery in the travel and entertainment sector after the pandemic, and we are excited to contribute to the South Korean economy while establishing and operating a successful, cutting-edge resort,” stated Bobby Soper, Chief Executive of MGE International.
“I am delighted to witness this significant milestone in our global vision for integrated resort development.”
The Mohegan’s advancement in South Korea comes after the tribe’s departure earlier this year from a proposal to construct and manage an integrated resort in Japan. The tribal operator was a member of the Oshidori group, which withdrew from the competition to build a project in Nagasaki in August, citing the project’s impracticality.
The company also sold its interest in a Greek integrated resort construction project in October to its joint venture partner and local construction giant GEK Terna.
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