In South Korea and the Chinese firm building an $800 million integrated casino resort near the port city of Incheon has for a second time reportedly been granted an official one-year extension to its construction deadline.
According to a report from Inside Asian Gaming citing a story from Gyeonggi News, the local arm of Guangzhou R&F Properties Company Limited was furnished with a year-long supplement by South Korea’s Ministry of Culture, Sports and Tourism last March after initially asking for a three-year postponement that would have given it until the spring of 2024 to complete all work on the envisioned 750-room development. The source detailed that this opening reprieve was granted after the subordinate experienced delays linked with the coronavirus pandemic and the ensuing departure of its American operating partner, Caesars Entertainment Incorporated.
However, the South Korea subsidiary of Hong Kong-listed Guangzhou R&F Properties Company Limited has now reportedly been granted another one-year extension on the provision that it increases its total investment in the five-star project being built near Incheon International Airport by a further 5%. The source explained that this R&F Korea junior is widely expected to apply for a third such postponement in around twelve months’ time after selling off some of the 1,087-acre site to help pay down a portion of its accrued debt.
Also known as the Midan City Resort Complex, the integrated casino resort being constructed by the Guangzhou R&F Properties Company Limited underling had reportedly been due to open last spring complete with a foreigner-only gaming floor offering a selection of roughly 700 slots and approximately 150 gaming tables. The large facility, which is currently only about one-quarter complete, is moreover purportedly set to eventually feature a 15,00-seat arena and a 205,500 sq ft conference center alongside an indoor climate-controlled dome housing retail, family amusement and dining establishments.
Despite this latest extension and Inside Asian Gaming reported that serious doubts still remain as to whether the South Korea development will ever be finished. American credit ratings behemoth S&P Global Ratings purportedly disclosed in January that Guangzhou R&F Properties Company Limited was essentially in evasion mode after asking for a six-month extension to repay some $608.6 million in debts and subsequently downgraded the firm’s long-term issuer credit evaluation from ‘CC’ to ‘selective default’.
Guangzhou R&F Properties Company Limited reportedly paid an undisclosed amount of cash to Caesars Entertainment Incorporated in February of last year so as to acquire this latter company’s outstanding 50% stake in the 1.85 million sq ft South Korea project, which for a time had carried the Caesars Korea designation. This arrangement purportedly allowed the Chinese firm to begin the hunt for a new foreign operating partner although no successful candidate has yet been chosen.