Successful Financing of Phase 1 Resort Project... "On Track to Open the Largest North American-Style Resort in Northeast Asia"
[Asia Economy Reporter Yu Je-hoon] Inspire Integrated Resort announced on the 29th that it has completed funding of approximately 1.8 trillion KRW for the development of the Inspire Entertainment Resort in Yeongjongdo, Jung-gu, Incheon. Inspire Integrated Resort is a project implementation corporation established with 100% investment by Mohegan Gaming & Entertainment (MGE), a global integrated resort developer and operator.
MGE has secured a total equity capital of 575 million USD (approximately 680.8 billion KRW) and raised a total of 1.04 trillion KRW in senior and subordinated loans through a domestic financial consortium led by NH Investment & Securities, KB Investment, and Hana Financial Investment.
Additionally, Hanwha Construction participated as a responsible contractor and subordinated investor through 100 billion KRW convertible bonds in partnership with Inspire, while Hanwha Hotels & Resorts is responsible for hotel operations as a strategic partner. To ensure the safety of the funding structure, MGE secured a capital replenishment commitment of about 100 million USD along with interest payment replenishment commitments from Hanwha Construction and Hanwha Hotels & Resorts.
Through this funding, Inspire has successfully raised 1.09 trillion KRW for direct construction costs and a total of 1.8 trillion KRW for the phase 1 resort project, including other financial expenses, and plans to open the largest North American-style entertainment resort in Northeast Asia by 2023 without delay.
Inspire Resort is the first North American-style integrated resort introduced in Korea, currently under development in the third international business district (IBC-III) of Yeongjong District, Incheon Free Economic Zone near Incheon International Airport. The production inducement effect and value-added inducement effect from this project are expected to reach approximately 58 trillion KRW and 18 trillion KRW, respectively.
The phase 1 resort development project includes a 5-star hotel consisting of three towers with over 1,000 rooms, a 15,000-seat multi-purpose professional performance arena, the largest convention facility in the metropolitan area, a shopping arcade featuring luxury brand shops, an indoor water dome usable year-round, and a 70,000㎡ outdoor themed space called 'Family Park.' The current construction progress rate is about 12%.
James Gessner, Chairman of MGE Group, stated, "As a leading North American integrated resort developer and operator with successful achievements in Connecticut, Las Vegas, and the Niagara Falls area, MGE hopes to expand globally based on the success of its first overseas project started in the Republic of Korea."
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