Marianas Variety

Last updateThu, 22 Aug 2019 12am







    Wednesday, August 21, 2019-1:07:49P.M.






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Japan firm to lend IPI $500M

COMMONWEALTH Casino Commission Executive Director Edward C. Deleon Guerrero welcomed the news that a Japanese company will lend Imperial Pacific International half-a-billion dollars for its integrated resort project on Saipan.

GGRAsia reported on its website that GCM Ltd. of Japan will lend IPI $500 million.

The funds will go toward the first phase of the resort project, which is due for completion by September, IPI said in a statement to the Hong Kong Stock Exchange.

According to GGRAsia, the first tranche of $100 million was released on Wednesday.

Tokyo-based GCM Ltd., the report added, operates three funds specializing in real estate, distressed assets and corporate investment. The firm also offers consultancy in a number of areas, including mergers and acquisitions.

In an interview on Thursday, Deleon Guerrero said whenever there is influx of new funds into an investor, “it’s always good news and we look forward to it.”

He said now that the casino investor is in the process of completing a huge project, any infusion of new funds will help IPI meet its obligations under its casino license agreement with the CNMI.

Variety was unable to get a comment from IPI chief executive officer Mark Brown.

In a separate news report, RNZ Pacific noted that the CNMI government has given IPI the green light to build 2,000 hotel rooms instead of 4,200 hotel rooms that the investor promised when it signed an exclusive casino license with the Commonwealth in 2014.

“The original $7.1 billion integrated resort development plan also included 300 villas, a 600-seat theatre, a 10,000 square-meter casino, retail space, and the world’s largest water park all within the span of five years,” RNZ Pacific stated.

“Five years after the 2014 agreement, Imperial Pacific just recently secured an agreement to operate and manage the defunct Mariana Resort & Spa, which will be partly used as land for the mammoth integrated resort project.”

The CNMI Lottery Commission has given IPI until Feb. 2021 to finish the three-phase development after initial deadlines were missed due to labor shortages, RNZ Pacific reported.