Osaka’s First Integrated Resort Secures Loan of JPY530 Billion

Osaka IR KK, the entity behind the first integrated resort in Japan planned to be built in the metropolis of Osaka, secured a loan from several banks. The loan of JPY530 billion (US$3,42 billion) was agreed upon on Tuesday, April 23, 2024, and among the banks that will participate in it are big Japanese banks Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Banking Corp.

New funding plan for MGM Osaka IR:

According to Nikkei, a famous news outlet, this is the biggest co-financing loan ever issued in Japan that saw several banks participating. 

The estimated budget for the construction of MGM Osaka IR, considering the loan from the banks and investors’ funding, reached JPY1,27 trillion.

The long-awaited resort will be placed at Yumeshima, an artificial island located in Osaka Bay, and it is expected, if everything goes as planned, that the property will be opened in 2030.

This integrated resort is a product of joint forces of MGM Resorts Japan LLC, which is the Japanese unit of globally famous US-based MGM Resorts International, and the domestic company Orix Corp. These two industry giants will be the major shareholders of the resort. However, there will be several minority investors, including Japanese-based conglomerate Hankyu Hanshin Holdings Inc and Hanwa Co Ltd, another huge Japanese company. In total, there are 22 minority shareholders, and their corporate headquarters are located in Osaka.

As GGRAsia reports, the prefecture revealed the stake percentage and the whole structure of the funding for this project.

Change of plans and new event:

Regarding equity funding, the budget is JPY740 billion, while the loan portion is set at JPY530 billion. MGM Japan has a percentage interest of 41%, Orix holds 41% as well, and minority investors hold 17% of all shares.

The situation changed when the new investors confirmed they were willing to participate. Before that happened, the equity funding was set to JPY720 billion, with a loan of JPY550 billion. MGM Japan and Orix held 43% of the total equity, and minority investors had 15% of it.

Before the opening of MGM Osaka in 2030, Yumeshima will hold another event – Expo 2025 Osaka, which will welcome visitors to Kansai, Japan. MGM Resorts will sponsor the US pavilion at that event, and the guests will be able to visit it from April to October 2025.