Incheon Midan City IR development gets 12-month construction extension
The South Korean Ministry of Culture, Sports and Tourism has granted R&F Korea (RFKR) a 12-month extension, until March 17, 2023, of the deadline for the completion of the development of its Midan City resort. Resort in Korea.
According to Gyeonggi Newsthe extension was granted on Friday on the condition that RFKR agree to increase its total investment in the project by 5%.
The company had requested a two-year extension until March 2024 but was offered 12 months instead, but it is reported that RFKR – the local branch of Hong Kong-listed Guangzhou R&F Properties Co Ltd – is planning to request a new extension at the end of the new period. Next year. It has also been reported that RFKR is seeking to finance the additional cost of the project by selling some or all of the land it owns in the town of Midan.
Despite the extension, concerns remain over the financing of the project due to the continued financial difficulties of Guangzhou R&F, which became the sole owner of the Midan City development in early 2021 after buying out the 50% stake held by its former partner, the American casino giant Caesars. Entertainment.
In January 2022, rating agency S&P Global said Guangzhou R&F was essentially in default and downgraded the company’s Hong Kong unit after requesting a six-month extension to repay $750 million in notes owed.
Midan City, currently stuck at a 25% completion rate, is expected to include a foreign-only casino, 751 hotel rooms, a theater and convention space.
Mohegan Gaming & Entertainment recently resumed construction of its own integrated resort in Incheon, Inspire Korea, after completing financing late last year.