South Korea’s Ministry of Culture, Sports and Tourism has granted R&F Korea (RFKR) a 12-month extension, until 17 March 2023, to its deadline for completion of its Midan City Resort Complex development in Korea.
According to Gyeonggi News, the extension was granted on Friday on the condition that RFKR agree to increase its total project investment by 5%.
The company had requested a two-year extension until March 2024 but was offered 12 months instead, however it is reported that RFKR – the local arm of Hong Kong-listed Guangzhou R&F Properties Co Ltd – plans to request further extension when the new deadline expires next year. It has also been reported that RFKR is looking to fund the additional project cost by selling some or all of the land it owns in Midan City.
Despite the extension, there remain concerns over the project’s funding due to the ongoing financial woes of Guangzhou R&F, which became sole owner of the Midan City development in early 2021 after buying out the 50% stake held by its former partner, US casino giant Caesars Entertainment.
In January 2022, ratings agency S&P Global said Guangzhou R&F was essentially in default and downgraded the company’s Hong Kong unit after it requested a six-month extension to repay US$750 million in notes due.
Midan City, currently stalled at a 25% completion rate, is slated to include a foreigner-only casino, 751 hotel rooms, a theater and a convention space.
Mohegan Gaming & Entertainment recently resumed construction on its own Incheon integrated resort, Inspire Korea, after completing financing late last year.