Inside Asian Gaming

FEBRUARY 2018 INSIDE ASIAN GAMING 23 “Once the international airport opens in 2019, customers and players will be able to fly directly from India, China, Thailand, Malaysia and beyond to an international airport located just 15 minutes from Tiger Palace Resort.” From a construction perspective it has been harder due to the fact that Nepal is land-locked. Logistically, even though the border area with India is mainly flat and low-lying, all goods must come through Kolkata unless they are flown in, via Kathmandu. BB: There were obviously some well-publicized delays and problems that impacted completion of Tiger Palace. Can you run through what happened? MB: The principal reasons were force majeure including the earthquake in 2015 and also political with a fuel blockade and a new constitution introduced at the end of 2015. BB: When did you first realize that the initial deadline and budget for completion of Tiger Palace were becoming unrealistic? MB: We held our November 2016 board meeting at Tiger Palace and the contractors and Project Director still maintained at the time that the planned end-March date was achievable. But by the middle of January 2017 it was clear that logistics and pace of completion were dragging the timeline. We held our January board meeting in Sydney and immediately commissioned an independent study to confirm fears raised at that time. As soon as we believed we knew, we informed the market. BB: In May last year your Chairman noted in his AGM address that the company’s credibility was an issue. What went wrong to reach that point? MB: The delays relating to the completion of Tiger Palace and the dip in performance at Phoenix during the second half of 2016 had likely impacted credibility. Since then we have bounced back on all fronts and, having raised additional capital, we completed the build and opening of the hotel and the casino at Tiger Palace by the end of 2017. We have achieved all of the things we set out to do in mid-2017, including our 5-star rating, casino licence and 2017 opening. BB: There was at that time an AU$19 million funding gap. On a personal level, did you ever fear that you might not be able to secure the required funding for completion? MB: Never. The IPO was tough enough and a good experience to prepare me and our broader team. The support of the long-term shareholders and the belief from the newer shareholders in the story, in management and in the fundamental proposition meant that it was a case of hard work, application and unwavering effort to get the job done. BB: What was the reaction from investors at that time and what feedback have you received more recently? MB: It wasn’t great at the time but is obviously much better now. Our shareholders are very knowledgeable and understand the fundamental proposition and changes we made. They backed us to complete and open in the revised time period and we have done that. BB: Can you talk about your local partners – who are they and what is their level of involvement?  MB: We have two local partners who are very experienced and well regarded in the tourism and the property and banking spaces respectively. They own 10% of the Casino Management company Silver Heritage Management Kathmandu Pvt. Ltd (SHMK). It is a legal requirement for the casino manager to be partially Nepal-owned. IN FOCUS Cabana Avenue and Poole Bar & Grille at Tiger Palace