Less than a week after signing a deal to purchase the Paradise Casino Jeju Lotte from fellow South Korean casino operator, Paradise Company Limited, Lotte Tour Development Company Limited has now reportedly announced the launch of a rights offering.
Funds for Jeju Dream Tower:
According to a report from GGRAsia, Lotte Tour Development Company Limited is hoping that the scheme will see it raise approximately $212.9 million to help it finish construction of its coming $606.6 million Jeju Dream Tower integrated casino resort.
Seoul-headquartered Lotte Tour Development Company Limited is to hold a 59% stake in the coming 38-story property on Jeju Island and reportedly revealed via an official press release that the rights offering is to be finished by the end of October and will prioritize existing shareholders before any unsubscribed options are placed on the open market.
Cash to cover scheduled mid-payments:
GGRAsia reported that the accumulated funds will be used to cover Lotte Tour Development Company Limited’s scheduled mid-payments to its partner in building Jeju Dream Tower, Chinese state-owned real estate firm Greenland Group. These expenses total almost $133.5 million and are to be payable one year and six months before the integrated casino resort opens in October of 2019.
The 75-acre Jeju Dream Tower is to be branded under the Grand Hyatt moniker of American hotel operator, Hyatt Hotels Corporation, with Lotte Tour Development Company Limited explaining that any unused funds from the rights issue will be set aside to cover interior design and operational costs.
Island’s tallest structure:
Lotte Tour Development Company Limited began construction on the 1,600-room Jeju Dream Tower in May of 2016 and revealed that the facility, which will be the tallest structure on Jeju Island, is to feature eleven bars and restaurants as well as a shopping mall and an observation deck.
Located less than two miles from Jeju International Airport, the development will furthermore feature a 98,166 sq ft foreigner-only casino offering approximately 420 slots alongside 190 gaming tables.