Akihabara News (Tokyo) — The plan to build a US$3.5 billion Integrated Resort (IR) including a casino at the Huis Ten Bosch theme park passed a major hurdle yesterday as the Sasebo City Council voted overwhelmingly to accept the proposal and to send it forward to the prefectural and national governments for licensing.
If it receives the national license, the consortium led by Casinos Austria International Japan will be authorized to construct its IR on a 32 hectare parcel of land adjacent to the existing Dutch-themed park, which is already the top tourist attraction on the island of Kyushu.
Construction would likely begin in the latter half of 2023 with an aim to open in autumn 2027. The expected number of annual visitors is anticipated to approach 7 million once it has operated for a few years.
The main point of concern—as is the case in Wakayama—is whether or not the operating consortium actually possesses the financial resources to build the facility as promised.
According to the plan that the businesspeople submitted to the local government, Casinos Austria is prepared to invest approximately 32%, or ¥140 billion (US$1.1 billion), of the needed amount; major Japanese companies, including some in Kyushu, will cover about 8%, or ¥35 billion (US$278 million); and the final 60%, or ¥263 billion (US$2.1 billion), will be borrowed from banks and other financial institutions.
CBRE Group, a US commercial real estate services and investment firm, would be involved in these funding arrangements, according to the documentation, but the names of the banks and financial institutions have not been released.
While commitment letters have been submitted that appear to cover the US$3.5 billion plan, there remain plenty of skeptics about the ultimate financial viability of the Nagasaki IR.
With passage by the city council, the plan must still receive the endorsement of the Nagasaki Prefectural Assembly and then be submitted to the national government before the April 28 deadline.
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