MGM-Orix, the only contender in Osaka’s IR tender, intends to invest nearly US$9.1bn in the development of the integrated resort.
Japan.- MGM Resorts International and ORIX (MGM-Orix) will officially submit their IR proposal to the Osaka Prefecture on July 20.
According to local media reports, it will propose a JPY1tn (US$9.1bn) investment. The figure is less than originally planned.
The other companies originally involved in Osaka’s request-for-proposal (RFP) process – Galaxy Entertainment Group, Genting Singapore, Melco Resorts, Sega Sammy Holdings and Shotoku Corp – all withdrew from the process.
The target opening date for the IR has been pushed back to sometime between 2028 and 2030. The Osaka government had asked potential contenders to assume the costs of extending the Osaka Metro line to the site, but authorities were afraid that as the only bidder MGM-Orix could renegotiate conditions.
Osaka also wanted its operators to add more MICE facilities beyond the requirements of national legislation but, according to Bill Hornbuckle, MGM president and CEO, the company’s IR may have less MICE space and fewer hotel rooms than expected.