Osaka IR cost rises, opening delayed
The opening of Osaka’s IR has been postponed to at least autumn 2030.
Japan.- Authorities in Osaka have said that the opening date for an integrated resort (IR) has been moved from autumn-winter 2029 to at least autumn 2030. There has also been an increase in the initial investment cost, which is expected to rise by JPY190bn (US$1.29bn).
The new provisional date appeared in the context of ongoing deliberations concerning land allocation on Yumeshima, an artificial island designated for the resort’s construction. There has also been a revision in the completion timeline for the completion of construction, from summer-autumn 2029 to a new target of summer 2030.
The investment cost was initially estimated at JPY1.08tn (US$8.38bn) when Osaka’s bid was accepted but now stands at JPY1.27tn, representing an increase of 17.6 per cent over the prior estimate. The new draft plan confirms that the loan portion of funding will remain at JPY550bn, while the equity component will rise from JPY530bn to approximately JPY720bn. That will be covered by the two primary partners, who will each increase their share of investment in the consortium from 40 per cent to 42.5 per cent. Minority investors will collectively see a reduction in their stake from 20 per cent to 15 per cent.
The revised draft plan is pending approval from Japan’s national government. The latest update emerged following a meeting held on Tuesday by the Second Capital Promotion Bureau, established jointly by Osaka prefecture and Osaka City, which served as a platform for discussing agreements between Osaka and its private-sector partners.
Osaka’s governor Hirofumi Yoshimura had previously expressed confidence that a delay in approving Japan’s first casino resort project would not hamper its success. In an interview with Bloomberg, Yoshimura said the delay would have minimal impact on the integrated resort’s prospects. Yoshimura emphasised Osaka’s intention to distinguish itself by leveraging the rich history and cultural heritage of the region and the nation as a whole.
