Funds will pay for “major development” of Dream Tower
South Korean casino investor Lotte Tour Development Co. Ltd. has announced a KRW240 billion (US$213 million) rights offering that will fund a foreigners-only casino project now in development on Jeju Island, South Korea.
In a news release, the company said shareholders will have first dibs on subscriptions to the rights offering. Rights unsubscribed by the existing shareholders will then be offered to the public. The operation is to be completed by the second half of October, reported GGRAsia.
The plan will allow Lotte Tour to “finance major development costs” including interior design and operational costs for the Jeju Dream Tower, which is being built in partnership with Chinese state-owned developer Greenland Group.
Jeju Dream Tower broke ground in May 2016 and is scheduled to open by October 2019. It will be the tallest building in Jeju at 38 floors. It will include a Grand Hyatt-branded hotel, and offer casino services, according to its promoters.
Lotte Tour “owns and will operate 59 percent” of the property, which includes “750 hotel rooms, 11 restaurants and bars, shopping malls, observation deck, hotel amenities, casino entertainment facility, etc.” The remaining will include an 850-room hotel residence developed by the Greenland Group. The news release stated that more than 80 percent of the hotel units were already sold.
Last month Lotte Tour announced it will acquire the entire capital of Paradise Jeju Lotte Casino for KRW15 billion. The casino venue is currently operated by Paradise Co. Ltd. and is located in Hotel Lotte Jeju. The company is considering a transfer of the gaming license from Paradise Jeju Lotte Casino to Jeju Dream Tower after it opens.
