GGRAsia – Nagasaki assembly vote Weds on prefecture IR plan

Nagasaki assembly vote Weds on prefecture IR plan

Apr 19, 2022 Newsdesk Japan, Latest News, Top of the deck

A plenary session of the Nagasaki prefectural assembly is due to vote on Wednesday (April 20) on the final draft of the IR District Development Plan outlining the Japanese metropolis’ proposals for a casino complex. That final draft had been published by the prefectural government on Monday.

On Tuesday, the general committee of the assembly voted in favour of the plan, and for its submission to the national government. There is an April 28 deadline for such submissions.

The slated cost for the Nagasaki scheme is JPY438.3-billion (US$3.5-billion), including JPY175.3-billion via equity.

According to GGRAsia’s Japan correspondent, the update on the IR plan only mentions Casinos Austria International Japan Inc, Nagasaki’s private-sector partner, as an equity investor.

Of the total JPY438.3-billion cost, JPY263.0 billion would be via debt. No mandated lead arranger has yet been identified in documentation made public, according to GGRAsia’s correspondent.

Last week it was reported that CBRE Group Inc, an American commercial real estate services and investment firm, would have some involvement in the funding arrangements.

Up to three such facilities will be permitted nationally under the liberalisation programme. The country’s government requires IR District Development Plans to include documentation as evidence of ability to raise funds for such schemes.

Such paperwork should be in the form of what is referred to as “commitment letters”, regarded by the Japanese authorities as legally binding in relation to certain conditions, according to GGRAsia’s Japan correspondent.

On Friday, Sasebo City council formally registered a vote in favour of Nagasaki’s IR District Development Plan. The resort would be located at the Huis Ten Bosch theme park in Sasebo City (pictured), part of Nagasaki prefecture.

(Updated, April 19, 3.05pm)