The existing NagaWorld complex is reaching full capacity, with 80-90% room occupancy on a regular basis as it caters to gamblers, tourists, tour groups, walk-ins and the general public. As such, NagaCorp has decided to develop Naga2 (costing US$369 million), which will be situated a stone's throw away from the current premises. The development of Naga2 has a total built-up area of approximately 110,105 square metres, which includes the NagaCity Walk with approximately 13,248 square metres of retail and public space, and the TSCLK Complex which features approximately 1,000 hotel rooms, 38 luxury VIP suites, a multipurpose-entertainment/theatre with a seating capacity of approximately 2,100; and additional gaming space (up to 300 gaming tables and 500 electronic gaming machines).
Based on the current state of the project, NagaCity Walk is scheduled for physical completion by the end of 2014, with operations commencing mid 2015; whereas the TSCLK Complex is scheduled for completion by late 2016, with operations commencing mid 2017. It is anticipated that the completion of Naga2 together with the present NagaWorld will position the Group as the leading integrated gaming and entertainment destination in the Mekong Region.
Naga2 will consist of two components: the TSCLK Complex and NagaCity Walk, with the following sub-components:
|Electronic gaming machines||500|
|VIP Private Gaming suites||38|
|Retail space(sq m)||13,248|
|MICE/Theatre facilities (seating capacity)||2,100|
Upon the completion of Naga2, which will be seamlessly integrated with NagaWorld, the enlarged property will offer full Integrated Resort facilities to our existing and future customers.
Current site of Naga2
For further details, please refer to the Circular dated 30 Dec 2011:
Reference is made to the announcement of the Company dated 9 September 2013 in relation to the Company's investment in Vladivostok, Russia. Pursuant to an investment agreement dated 6 September 2013 entered into among the Company, the Administration of Primorsky Territory of the Russian Federation acting by its Governor; Open Joint Stock Company Primorsky Krai Development Corporation and the Department of International Cooperation and Tourism Development of the Primorsky Territory, the Group agreed to make an investment of not less than US$350 million (approximately HK$2.7 billion or approximately Russian Roubles 11.6 billion) in a gaming and resort development project in Russia under the name 'Primorsky Entertainment Resort City' (PERC) (the "PERC Project") sited on an area with dual frontage and majestic views to the sea and an inland lake flanked by two hills.
The PERC Project is currently at its development and investment stage and the Group has established certain indirect subsidiaries in Russia for the purposes of undertaking the PERC Project and will apply for a gaming permit to permit the Group (through one such Russian subsidiary) to conduct all gambling activities within the Casino Hotel Complex in "The Integrated Entertainment Zone "Primorye" Region, Russia" pursuant to the federal laws of Russia. The Group anticipates that the process of obtaining all necessary permits for the construction of PERC will be completed in about a year. Thereafter, it is envisaged that the PERC Project will be completed within four years from the date of obtaining all approvals.
The PERC Project is not expected to be operational before 2018 and will be expected to be the Group's next growth catalyst. The Group believes that its participation in an exciting new casino market in a different geographical region will diversify and enhance the Group's results in the long term.