Non-gaming leisure and entertainment facilities to be built near the under-development MGM Osaka integrated resort (IR) with casino on Yumeshima island, Osaka, could involve investment of as much as JPY1.0 trillion (US$6.67 billion).
If realised, it would raise total investment on tourism and leisure infrastructure on Yumeshima (pictured in a file photo) – including the JPY1.27 trillion flagged as the price tag for MGM Osaka – to the equivalent of circa US$15.16 billion.
Takenaka Corp chairman Masato Namba’s take on the topic was reported on Tuesday by business news platform Nikkei Inc, according to information reviewed by GGRAsia’s Japan correspondent.
Mr Namba stated: “The investment of Yumeshima Phase 2 development could be as large as JPY1 trillion.”
Takenaka Corp is involved in what media stories have described – citing unidentified Osaka officials – as one of two “best” proposals for the support facilities at Yumeshima. The supporting amenities are referred to by Osaka’s authorities as ‘Yumeshima Phase 2’.
In February it was reported – citing unnamed sources – that the Yumeshima Phase 2 facilities would cover 50 hectares (123.6 acres) consisting of four “zones”, including a hotel and exhibition venue to support the IR, and facilities for “advanced medical care” as well as for “life science”, and possibly a motorsport circuit and a “world-class” water park.
Takenaka Corp boss Mr Namba observed: “Yumeshima Phase 1 [the Osaka IR] and Phase 2 together could be a super entertainment resort area. We would like to make Yumeshima island to be a gateway to the Seto Inland Sea.”
He stated: “It is important to have key content as attractive as the Osaka IR in Yumeshima Phase 2. Naturally, we are considering inviting luxury Western hotel brands there.”
Takenaka Corp is one of Japan’s largest general contractors for real estate engineering and construction, and is also an equity investor in the Osaka IR KK consortium building the actual casino resort.
Takenaka Corp is pursuing its Yumeshima Phase 2 ambitions via its unit Takenaka Civil Engineering & Construction Co Ltd.
The Nikkei report also carried remarks about Yumeshima Phase 2 from Kenji Hasuwa, chief executive of Obayashi Corp, another of the country’s major general contractors. It too, has been reported as a front runner for Phase 2 work, as well being an equity backer of the MGM Osaka consortium.
Mr Hasuwa was cited as saying regarding previously-reported suggestions of building a race circuit in Phase 2: “Motorsport is a quite attractive genre which can highlight and differentiate the area from others.”
He added that a racing circuit on Yumeshima island would be “close to the metropolitan area” and be a “quite promising” investment, in his view.
Mr Hasuwa further noted: “We can join and cooperate with another group [among] the two best proposals” for Yumeshima Phase 2
He stated: “In terms of the construction of Yumeshima Phase 2, it is difficult for one general contractor to do all the jobs. It is like the Osaka IR construction, where multiple contractors are joining forces.”
The MGM Osaka scheme is due to have a ground breaking ceremony on April 24, said recently Bill Hornbuckle, chief executive and president of U.S.-based casino operator MGM Resorts International, one of the project’s main backers.
The property – also sited on a 50-hectare plot – is scheduled to launch in 2030. Yumeshima Phase 2 is slated to open at around the same time.
