Lotte Tour Development Co. is raising 240 billion won (about US$214 million) to complete the construction of its integrated resort on Jeju island in South Korea. Once completed, Jeju Dream Tower is set to be the tallest and largest landmark on Jeju island.
The IR will reach 169 meters in height with 38 floors.
The island is a popular destination for South Korean honeymooners and also draws in large numbers of Japanese visitors. Japan is the island’s second-largest source market for tourist arrivals. There are eight operating casinos on Jeju, although only one other IR—Landing International’s recently-opened Jeju Shinhwa World.
Funds are being raised through an offering of shares to existing shareholders. Those rights that are not taken up will be sold to the general public.
Lotte says it plans to use the money to pay off mid-payments of 100 billion won (about US$89 million) to be settled one year prior to the grand opening, and 50 billion won (about US$45 million) to be paid six months prior, as well as for interior and operation costs.
“Now that mid-payments are fully financed with the rights offering, the last pieces of the puzzle in Jeju Dream Tower Integrated Resort construction are coming together,” said Mr. Kim Ki-Byung, chairman of Lotte Tour Development Co., Ltd.
“Jeju Dream Tower Integrated Resort is currently constructed up to 20th floor. When this Integrated Resort opens by October of next year, 3,100 new jobs with the highest average income in Jeju will be created,” he added. (AGB)