The company behind the Tigre De Cristal casino resort in Russia’s Primorsky Krai region, Summit Ascent Holdings Limited, has reportedly signed a non-binding memorandum of understanding with Kangwon Land Incorporated covering “potential areas of cooperation and strategic partnership”.
Kangwon Land Incorporated operates the Kangwon Land Casino And Hotel in South Korea, which is the nation’s only casino where locals are permitted to play, while Summit Ascent Holdings Limited opened the 121-room first phase of its Tigre De Cristal development in October offering 321 slots alongside 68 gaming tables.
According to a report from the GGRAsia news domain, Hong Kong-listed Summit Ascent Holdings Limited declared that the deal with Kangwon Land Incorporated includes a “possible Korean contractor and Korean project finance for phase two” of Tigre De Cristal alongside potential “project finance investment in phase two [of Tigre De Cristal] by Kangwon Land [Incorporated]”.
Currently the only legal casino in the vast Primorsky Krai region, Tigre De Cristal is located approximately 31 miles from the port city of Vladivostok and was constructed at a cost of around $172 million. Summit Ascent Holdings Limited, which is controlled by Asian gaming entrepreneur Lawrence Ho Yau Lung, announced last year that it was prepared to spend up to $700 million to inaugurate a second phase of the development by 2018.
GGRAsia reported that the memorandum of understanding released to the Hong Kong Stock Exchange earlier today additionally covered a “training exchange programme” that could see staff members swap between the venues and makes mention of a “mutual marketing program” encompassing “proprietary travel agency cooperation, cruise line routing between Kangwon Land Casino And Hotel and Tigre De Cristal and charter flights between Kangwon Land Casino And Hotel and Tigre De Cristal”.
Other areas of potential cooperation cited in the filing include a “joint or sole golf course, clubhouse and sporting club development and duty free shopping in phase two” of Tigre De Cristal as well as “potential hotel management and operation” by Kangwon Land Incorporated “or its designated hotel management company” of a second-phase hotel at the Russian development.
In return, the filing reportedly states that Summit Ascent Holdings Limited could invest in “future investment projects of Kangwon Land [Casino And Hotel]”, which saw net income at its South Korean casino for the second quarter of 2016 swell by 27.1% year-on-year to $110.1 million, alongside “other direct or cross holding investment as appropriate”.