Primorsky Krai auction attracting domestic and international interest
In Russia, the state-owned Primorsky Krai Development Corporation has reportedly declared that it has received inquiries from both domestic and international casino firms regarding the three plots of Far East land it intends to auction off later in the year.
According to a report from GGRAsia, the Primorsky Krai parcels have been earmarked for the development of integrated casino resorts while Andrey Folomeev, General Director for the Primorsky Krai Development Corporation, also stated that the auction’s original August 28 deadline had been extended by another month so as to provide potential bidders with more time to prepare their proposals.
Thanks to federal legislation ratified in 2009, Primorsky Krai is one of five disparate Russian regions, which additionally encompass the Kaliningrad Oblast on the Baltic Sea, central Asia’s Altai Krai, the Krasnaya Polyana area near Sochi and sections of the Crimean peninsula, where casino gambling is permitted. Although up to eight developments were initially planned for the area some 31 miles north of Vladivostok, the intervening years have seen only the Tigre De Cristal venue from Hong King-listed operator Summit Ascent Holdings Limited open at a cost of approximately $144 million.
Moreover, Folomeev reportedly told GGRAsia that adjoining plots previously granted to casino hopefuls Gaming Group Primorye and Royal Time Group could also be re-auctioned after these firms had their contracts cancelled for failing to stick to an agreed development timetable.
Controlled by gaming magnate Lawrence Ho Yau Lung of Melco International Development Limited fame, Summit Ascent Holdings Limited opened the Tigre De Cristal venue in 2015 complete with a casino offering some 769 slots and 67 gaming tables. It is expected to be joined sometime next year by the nearby Seaside Entertainment Resorts City, which is being developed by Cambodian firm NagaCorp Limited at a cost of around $350 million. Domestic operator Diamond Fortune Holdings is additionally hoping to inaugurate its $900 million Selena World Resort and Casino in 2018 while Folomeev reportedly told GGRAsia that he was “satisfied” with the current pace of development.
“Primorsky Krai now already has the highest [business] rates among all gambling areas in Russia and, of course, we are the only one area that was recognized by the largest companies from the gambling industry such as Melco International Development Limited and NagaCorp Limited as [a] potentially successful project,” Folomeev told GGRAsia.
Folomeev reportedly also cited a study conducted by consultancy EY on behalf of his group that found that the Primorsky Krai casino zone is expected to generate annual gross gaming revenues of about $2.2 billion by 2025. He furthermore proclaimed that the eight planned casinos for the area and their 6,000 hotel rooms could attract upwards of eight million tourists by 2022 and that the Primorsky Krai Development Corporation was prepared to spend as much as $926 million on infrastructure improvements by the same date.