US tribal casino operator Mohegan Gaming & Entertainment says it has recommenced construction of its South Korean integrated resort, Inspire Korea, after completing financing late last year.
As previously reported by Inside Asian Gaming, Mohegan confirmed the completion of financing in November with the full US$1.55 billion in aggregate funding comprising US$575 million in equity, a KRW1.04 trillion (US$890 million) finance loan from raised through a three-bank Korean consortium – KB Securities, NH Investment & Securities and Hana Financial Investment – and KRW100 billion (US$85.5 million) from the General Contractor, Hanwha Engineering & Construction Corp.
Subsequent to completion of the financing, Inside Asian Gaming interviewed Mohegan Gaming and Entertainment International President Bobby Soper in December 2021.
As part of its overnight results announcement for the three months to 31 December 2021, Mohegan said Hanwha Engineering & Construction Corp has “remobilized and recommenced construction work on site” including structural steelwork and below grade utility construction plus infrastructure related work such as utilities and roadways to the site. The procurement of major trades and long lead items is also in progress.
Mohegan had stated upon securing final financing in November that it is hoping to open Inspire Korea within the first half of 2023.
The development is slated to include three hotel towers, an arena, a foreigner-only casino, dining, retail, convention and entertainment options, a year-round indoor water dome experience, and an outdoor family park.
It will become the second integrated resort to open in Incheon after Paradise City – the latter being a joint venture partnership between Korea’s Paradise Co and Japanese gaming firm Sega Sammy Holdings.
The company said on a call with analysts overnight that the resumption of construction “demonstrates MGE’s dedication to growth and diversification.”
Mohegan, which operates seven casinos across the United States and Canada, reported a net loss of US$11.7 million for the December quarter, narrowed from a US$26.6 million loss a year earlier. Net revenues rose 74.2% to US$402.0 million and Adjusted EBITDA by 140.8% to US$97.4 million.