The final draft of the regional development plan for Nagasaki’s IR bid has been submitted to the Sasebo City Council, including an outline of funding for the JPY 440 billion (US$3.5 billion) project.
According to the plan, funds for the IR are to be procured by CBRE, a major real estate service company. The CBRE Group boasts 100 locations throughout the world, including major cities in Japan. Its commercial activities include both a real estate business and an investment management firm.
A detailed breakdown of the JPY 440 billion in capital includes approximately JPY 175 billion (US$1.4 billion) in corporate investment and JPY 265 billion (US$2.1 billion) in financing.
Approximately 80% of the corporate investment will be made up of foreign investment, including operator Casinos Austria International Japan (CAIJ), while the remaining 20% will be investment by domestic Japanese companies, especially those located in Kyushu.
According to a source in the prefectural government, between CBRE, foreign investment and domestic investment, the approximately JPY 440 billion has already been earmarked for investment through commitment letters and similar agreements which already exceed the planned amount.
However, aside from the fact that the prefecture and operator are still being examined and no final decision has been made, some companies planning to invest are doing so under the condition that their names are not made public until after the national government approves the application, if it does so at all.
Should the plan be approved by Sasebo City Council by 15 April, further approval by the Nagasaki Prefectural Assembly will be quickly sought in order to meet the 28 April deadline set by the national government to submit final bids.
