Preparatory construction for the MGM Osaka integrated resort, a major international project involving United States-based MGM Resorts International and several Japanese investors, officially commenced on October 15. This project, valued at JPY1.27 trillion (approximately US$8.52 billion), is set in motion following a detailed schedule outlined in Osaka’s IR District Development Plan, updated last April.
Groundwork laid for MGM Osaka’s integrated resort:
The plan details a phased construction timeline, with initial preparations beginning “around summer” this year, leading to main construction efforts kicking off “around April” 2025. The comprehensive development is slated for completion “around spring” 2030, with doors opening to the public “around autumn” the same year.
Osaka’s governor recently announced a slight delay in piling work at the MGM Osaka site, intending to mitigate noise during Expo 2025 Osaka. This major international event, set to conclude in mid-October next year, is adjacent to the resort’s location. The construction adjustments aim to minimize disruptions to the Expo experience.
As part of the early-stage development, MGM Osaka’s preparations include establishing a temporary enclosure, setting up a site office, and ensuring an adequate electrical power supply. These foundational steps were catalyzed by the recent transfer of a significant land parcel on Yumeshima Island to Osaka IR KK by Osaka’s city government. This 46-hectare land acquisition is critical for the project’s progression, with an additional 3 hectares dedicated to supporting Expo 2025 Osaka.
Strengthened commitments and financial undertakings:
In a show of dedication to the Osaka IR project, MGM Resorts International has recently decided to forego its withdrawal rights for the next two years, signaling a strong commitment to the project’s success. According to Inside Asian Gaming and previously reported by Nikkei, this decision follows concerns regarding fluctuating tourism levels and potential unforeseen complications at the Yumeshima Island site, which had previously allowed MGM the flexibility to exit the project under specific conditions until September 2026.
According to GGRAsia, the project demands a monthly rent of JPY210.7 million, equivalent to JPY428 per square meter, for the leased land. This rent is subject to review and possible adjustment by the Osaka authorities every five years, ensuring fair valuation throughout the 35-year lease signed with Osaka IR KK.
Upon completion, the MGM Osaka IR aims to become a cornerstone of tourism in Japan. The resort will feature 2,500 hotel rooms distributed across three different hotel brands, 730,000 square feet of MICE (Meetings, Incentives, Conferencing, Exhibitions) space, and extensive tourism facilities that highlight the cultural and leisure offerings of Osaka and Japan.
This ambitious development is expected to play a pivotal role in reshaping Osaka’s tourism landscape, enhancing its global appeal as a destination for leisure and business travelers alike. With the project’s implementation agreement signed in late September 2023, MGM Resorts International, along with its partners, are set to drive forward one of the most significant investments in Japan’s hospitality and entertainment sectors.
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Vanja Mitic 2024-10-16 14:35:30
