The U.S. regional tribal casino operator has “executed important agreements” with IIAC as to the casino resort planned for South Korea.
Korea.- Mohegan Sun president and CEO Mitchell Etess has announced that the company “executed important agreements with the Incheon International Airport Corp (IIAC)” relating to the casino resort that’s set to be open in Incheon, near Seoul. The tribal operator has partnered up with South Korean chemicals manufacturer KCC Corp and the IIAC to operate the “Inspire Integrated Resort”.
As reported by GGRAsia, Etess explained on a conference call that the agreement is related to “the required surrounding infrastructure, the capital expenditures of which will be ultimately funded by the IIAC, our landlord on the project.” He also advanced that its constructions are expected to begin between late 2017 and early 2018 in order to open the resort in 2020.
Last month, Mohegan Sun entered into a development services agreement with the scheme’s consortium that foresees a payment of US$40 million over the construction period for the project in South Korea. Said period is expected to last between three and a half and four years. Etess confirmed that his company has already received its first installment, totalling US$10 million under the agreement.
The construction will be completed through multiple phases to be completed over a period of 20 years. The first one has an estimated budget of US$1.6 million and the total development is expected to cost around US$5 million.
CFO Mario Kontomerkos said that the design of the scheme was already at the halfway point and described it as “fairly advanced in the architectural process.”
He also added: “We’re also now able to do some much better costing exercises. From a project financing perspective, I think we’re actually beginning that process now. It’s going to take some time.”