Asian IR operator NagaCorp has confirmed the final cost of its upcoming Phase 3 development of Cambodian integrated resort NagaWorld, to be called Naga3, at US$3.5 billion of which half will be funded by controlling shareholder Dr Chen Lip Keong.
The announcement, filed with the Hong Kong Stock Exchange late Sunday night, reveals NagaCorp has signed an agreement with long-term contactor CCAG Asia Co., Ltd to develop the Naga3 project for a total cost of US$3,515,011,000. The agreement requires delivery of a “fully completed and operational Naga 3 equipped with theme park equipment, furniture and fixtures, security like CCTV, specified information technology systems, full hotel operating services and equipment and utility connection cost, and other fully equipped necessity which may allow the company to commence business operation after handing over.” Land cost is not included.
The final figure was reached after discussions with financial advisors Credit Suisse and Morgan Stanley, Project Appraiser Colliers and the company’s Project Consultants.
NagaCorp also revealed it has determined that development of Naga3 will be 50% funded by Dr Chen and 50% via external funding options which each to contribute US$1.76 billion. Dr Chen, whose contribution will be settled via Settlement Shares upon project completion, has also agreed to fund any costs over and above the agreed amount.
The company released first details of Naga3 earlier this month, with the development to cover a gross floor area of 544,801 square meters and incorporate two 66-storey hotel towers, two 53-storey hotel towers, a 55-storey condotel tower, a three level basement and a 12-storey podium.