Japan will soon announce whether it will accept proposals for integrated resorts (IRs) in Osaka and Nagasaki.Cantor Fitzgerald and Credit Suisse will reportedly open bank accounts in the casino project if Nagasaki is chosen.
The IR envisioned by Osaka and Nagasaki is by no means cheap.The resort cost in Osaka is expected to be about 90 billion yen.In Nagasaki, it will be a project of about 40 billion yen.However, the government will bear a considerable amount of that amount.
That's where Cantor Fitzgerald and Credit Suisse come in. According to GGRAsia, Nagasaki Prefecture Governor Kengo Oi Shoji revealed this week that they had provided financial services.
safe investment
Nagasaki Prefecture estimates that annual gross gaming revenue (GGR) received from IR casinos will reach ¥1500 billion (US$10.5 billion).Nagasaki Prefecture will receive 15 billion yen (US$225 million), or 1%.
The involvement of two global financial institutions seems to indicate optimism about the success of Japan's IR plans.Credit Suisse and Cantor Fitzgerald were actively looking for ways to participate in the development proposal when Wakayama was still a competitor.
Taisho Pharmaceutical said the two companies could provide the 80% stake needed for the Nagasaki project.Both companies have presented "commitment letters" indicating potential investments.The governor made the announcement at a regular meeting of the prefecture's investor relations committee on Tuesday.
Whether Nagasaki Prefecture needs or can take advantage of this investment remains to be seen.The Japanese government must first make a selection.
According to the rules set by the country, up to three cases are possible in the first screening.Despite initial strong global interest, only two companies were shortlisted.
Japan can choose either IR, both, or none.If nothing is selected, the project may be abandoned.On the other hand, if we choose both, we could see the first IR in 2027.Nagasaki is expected to be completed by then, and Osaka is aiming to open in 2029.
Japan's IR committee is expected to announce its decision later this year.
Nagasaki theme park replaced
A popular tourist theme park adjacent to a planned IR site in Nagasaki has found new owners.Japanese travel agency HIS has been considering selling the Huis Ten Bosch theme park for months.The contract was concluded at the end of last month.
HIS will sell about 66% stake in Huis Ten Bosch to PAG, a Hong Kong asset management company. HIS probably wanted more than that, but the sale would bring in about $4 million.
When the company announced the potential sale, the travel agency only mentioned a price of “tens of billions of yen.”That widens the range of options.But the park's location should warrant a higher value.According to Japanese media, PAG valued HIS shares at about $7 million, so it was a bargain.
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