Akihabara News (Tokyo) — With less than three months remaining before the deadline for licensing applications to the central government, the Clairvest Group-led consortium is still unable to explain in detail how it would finance the proposed ¥470 billion (US4.1 billion) Integrated Resort (IR) including a casino in Wakayama city.
“Unfortunately the committee has to say that the plan is still unclear in details and is not convincing as to the fundraising,” stated the Wakayama Prefectural Assembly on February 7.
Nevertheless, Clairvest Neem Ventures has made some progress in the four months since the assembly first began flagging its concern that the bid isn’t credible.
For example, it has now been revealed that the Clairvest Group would hold a 55% stake in the IR while major US casino operator Caesars Entertainment would hold a 5% interest. Other investors would collectively take the remaining 40% stake.
The number of companies in the consortium and the breakdown of the final 40% hasn’t been announced, but it is thought to include stakes for major construction firm Nishimatsu as well as William Weidner’s AMSE Resorts Japan and Macanese esports entrepreneur Mario Ho.
These partners are expected to collectively pony up ¥145 billion (US$1.3 billion) as an initial investment.
The precise role of Caesars Entertainment beyond being the casino operator is unclear. The US firm has previously stated that it will not be making a financial contribution to the project, though the latest concept images (see above) suggest that Caesars branding would be most prominent.
Where the Wakayama IR plans get murky, however, is in regard to the bank financing for remaining ¥325 billion (US$2.8 billion) that would be required to build the casino resort. Investment bank Credit Suisse is identified as the main backer, but it does not appear that the consortium has yet obtained firm commitments from the financial institutions.
Despite again expressing dissatisfaction with Clairvest’s financial plan, the prefectural assembly has given the green light to proceed with the public consultation process in order to assure that the end-of-April application deadline can still be met.
If financing and an IR license can be secured, the plan now envisions the IR opening to the public in autumn 2027.
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