Spanish gaming group Codere SA has signed a joint-venture agreement with U.S.-based Hard Rock International to develop gaming properties in Mexico. The partners’ first project reportedly will be a new $1 billion “tourist complex” in Mexico City, featuring Hard Rock’s second guitar-shaped hotel.
According to the terms of the agreement, Codere will “cede land” to Hard Rock, which will finance a 48-story complex with a casino and sportsbook property serviced by Codere. Codere will act as the minority partner in the venture, maintaining 40 percent of equity.
According to a report in SBC News, the joint-venture agreement is seen as “a major coup” for Codere and its ongoing corporate transformation program, which seeks to expand the business within the markets of Mexico and Brazil. Facing a number of business challenges, Codere governance appointed investment bank Credit Suisse to act as lead financial advisor in June. Codere is looking to improve its performance after 2018 ended with losses of €40.4 million (US$44.8 million).
