The central government of Japan has given its approval for an implementation agreement between Osaka Prefecture and the MGM Resorts consortium regarding the development of an integrated resort on Osaka’s Yumeshima Island. This approval sets the stage for the signing of a formal agreement between the parties, anticipated to occur within the month. The revised agreement pushes back the original opening date by one year to 2030 and increases the expected initial investment by approximately $1.3 billion to JPY 1.27 trillion ($8.60 billion) due to rising construction material prices.
Implementation Agreement Approval:
Japan’s central government has approved an implementation agreement between Osaka Prefecture and the MGM Resorts consortium, a significant step toward the development of an integrated resort on Yumeshima Island in Osaka.
Minister for Land, Infrastructure, Transport and Tourism, Tetsuo Saito, announced the approval on Friday after Osaka Prefecture submitted a revised agreement on 8 September.
The revised agreement has pushed the originally planned opening date back by one year to 2030 and increased the expected initial investment by approximately $1.3 billion to JPY 1.27 trillion ($8.60 billion) due to soaring prices for construction materials.
Anticipated Signing of Formal Agreement:
With the approval in place, Osaka and the preferred IR partner consortium, led by MGM Resorts and local firm Orix, are expected to sign the implementation agreement within the current month.
Upon signing, the consortium plans to initiate ground liquefaction countermeasure work during the current autumn, followed by the construction of the main facility commencing around spring of 2025.
Integrated Resort Development Overview:
The integrated resort (IR) on Yumeshima Island is projected to include 2,500 hotel rooms across three hotel brands, 730,000 square feet of MICE (Meetings, Incentives, Conferences, and Exhibitions) space, and tourism facilities showcasing the best of Osaka and Japan.
The approval of the implementation agreement sets the stage for the Osaka integrated resort project, positioning it for development in the coming years with a revised opening target of 2030 and an increased investment to accommodate rising construction costs.