GGRAsia – No bids yet for Primorye casino plots auction: Primorsky Krai

No bids yet for Primorye casino plots auction: Primorsky Krai

Sep 25, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck

Primorsky Krai Development Corp says it has yet to receive any official bid for plots earmarked for casino development up for auction in the Primorye casino development area, near Vladivostok in Russia.

Primorsky Krai Development launched in July a total of three independent auctions for land in Primorye that is earmarked for casino development. The initial deadline for applications was August 28, but the company extended the time limit for submission of bids until Thursday (September 28). It said at the time that the decision was made to provide potential bidders with more time to prepare their proposals.

“We held on-site activities to demonstrate the potential of the … lands,” said the company at the time, mentioning interest from firms based in Russia, China, South Korea and several European countries. Aside from providing potential bidders with more time to prepare their proposals, the firm said it would also use the additional time “to attract new investors”.

“We have not received applications yet [for the land auctions] but our headquarters are staying in touch with investors and companies,” a Primorsky Krai Development spokesperson told GGRAsia on Monday.

The spokesperson added that Primorsky Krai Development representatives were scheduled to meet today (Monday) with executives from a Russian company potentially interested in participating in the land auction.

The Primorye casino development area is located 50 kilometres (31 miles) from Russia’s Pacific port of Vladivostok. Primorsky Krai Development is a government-owned company overseeing the development of the Primorye area.

Andrey Folomeev, general director of Primorsky Krai Development, told GGRAsia in August that, according to a report prepared by consultancy Ernst & Young for Primorsky Krai Development, the Primorye casino development area is expected to generate annual gross gaming revenue of US$2.2 billion by 2025. Mr Folomeev also said at the time that Primorsky Krai Development had received enquiries from Russian and international firms about the plots up for auction in the Primorye casino development area.

The only company that has so far built a casino in that area is Hong Kong-listed Summit Ascent Holdings Ltd. It opened phase one of its Tigre de Cristal resort in autumn 2015.

Hong Kong-listed casino operator and developer NagaCorp Ltd had a ground breaking ceremony on its Primorye site in May 2015. Company chairman Tim McNally told GGRAsia recently that the firm was still anticipating to open the property in the first half of 2019.

A third investor, Diamond Fortune Holdings Ltd, reportedly began earlier this year ground preparation for its first casino resort in Primorye. The firm plans to open the first stage of the project – named Selena World Resort and Casino – in 2019.