Yokohama Officially Ends RFP Submission Phase For Integrated Resort
Yokohama City in Japan this week closed its Request for Proposal period for different partners for its plan to set up an Integrated resort (IR) in the country.
As per Japanese laws, local authorities seek to host a casino resort but first identify a financial partner and then officially apply for hosting rights to the government.
So, the authorities are expected to choose potential groups for the scheme this summer. The relevant legislation framework only permits up to three resorts in Japan.
The city confirmed submissions from a few groups. One of them is Sega Sammy Holdings, a Japanese entertainment group that runs Paradise City casino resort in South Korea. Genting Singapore Limited, the operators of Resorts World Sentosa, also qualified.
Melco Resorts and Entertainment Limited had earlier been reported to have qualified for the RFP, but the authorities have yet to confirm.
Several local partners have been identified, like Kajima Corp, as the construction partner, Obayashi Corp as contractors, Sohgo Security Services Ltd, etc.
In an announcement to the Singapore Exchange, Genting Singapore said it aimed to “create a world-class IR destination that is strategically positioned, sustainable and anchored on strong local collaborations.” This is the basis of their bid for the Yokohama casino scheme.
The company also mentioned that its investment would be less than 100 percent of its market capitalization based on its proportionate shareholding interest in the Yokohama project.
Furthermore, Maybank Investment Bank Bhd analyst Samuel Yin Shao Yang estimated that the Yokohama Integrated Resort would add about SDG1.8 billion to Genting earnings. And, this is if they own just 50% of the joint venture as proposed.
Earlier in May, Maybank also estimated that the Yokohama casino scheme would start operating in 2028. It would then generate about $6.5 billion yearly in gaming revenue and about $1.9 billion in non-gaming revenue.