Progress in Mohegan’s Gaming & Entertainment ambitious $5 billion resort project Inspire at Icheon International Airport in South Korea as the company posts $8.3 million loss for 2Q22.
In the second quarter financials of the company presented for 2022, the company said that its net loss for the quarter ended on March 30, stood at $8.3 million and was $11.5 million unfavorable to the prior-year period primarily due to interest expense related to Inspire Korea in the current period.
Of the Capitalization summary comprising the total outlay of $2.6 billion as presented in the second quarter earnings for 2022 presentation, total credit facilities for South Korean project comprised $545 million.
Of the total $545 million, Inspire Korea Credit Facility – Tranche A comprising $183 million is borrowed until 29th November 2025 at 5.40% floating coupon rate, the presentation date read.
Whereas another Inspire Korea Credit Facility – Tranche B comprising $74 million is borrowed till 29th November 2025 at 7% floating coupon rate.
The MGE Korea Term Loan of $287 million was borrowed at a flat 17% coupon rate till 24th June 2027.
Partnerships forged
INSPIRE Entertainment Resort, being developed within the Yeongjong Island’s Free Economic Zone in Incheon, signed a business agreement (MoU) on June 20th with Samsung Electronics and Hyundai Futurenet regarding the supply of a digital LED signage system and a joint investment and development of an immersive media art exhibition hall in the resort.
The property has also entered into a strategic partnership agreement for retail development with Luxury Business Institute Korea and inked MoU for same purpose on Feb 8th, 2022, vide same the two companies will attract lifestyle and luxury boutique stores and introduce a differentiated retail platform that combines tourism and shopping entertainment aimed at domestic and foreign travelers and casino customers.
Construction continues
In the Q2 FY22 supplemental earnings deck presentation an update on Inspire read that the project will house a foreigners-only casino, three hotel towers, 15,000 seat arena, convention space, dining, retail and entertainment options, and a year-round indoor water dome experience and an outdoor family park.
However, there was no mention of the private air terminal in the presentation.
Whereas an update on construction read of work at the Inspire site was progressing. Concrete structure work at all three hotel towers is underway and progressing as planned. Structural steelwork for the public area, precast concrete arena structure and below-grade utility construction are underway.
Procurement of major trades and long lead items and infrastructure-related work (both off-site and on-site) including utilities and roadways to the site are in progress.
Progress in Mohegan’s Gaming & Entertainment $5 billion ambitious resort project Inspire at Icheon International Airport in South Korea is eagerly awaited by the industry.
Inspire is being marketed as the first destination resort in the world with its own private air terminal.
