The Osaka IR by MGM Resorts Japan is planning to start construction preparation works within the month, once the planned site is handed over by the City of Osaka.
According to Japanese media, MGM Resorts has also forfeited its right to withdraw from the almost $10bn development within the next two years, to clarify its commitment to the project.
The agreement signed with the Osaka authorities included the right for the IR developer to “withdraw from the deal” if certain conditions were not in place. These covered issues such as the tax regime, investment requirements, land improvements and tourist numbers.
As per the contract, if the developer exercised its right to terminate the deal based on those conditions not being met, it would not need to pay any compensation.
Osaka IR Corporation was a joint venture between MGM Resorts International and Orix Corporation, a Japanese-based company.
The project, worth about JPY1.27trn ($8.90bn currently) is scheduled to open in 2030, according to its promoters. The complex is to be built on Yumeshima, an artificial island in Osaka Bay.
The project implemented its self-monitoring system starting in March 2024, which included monitoring Design and Construction, Opening Preparations, Financial Status, Safety and Compliance plus any necessary corrective actions if needed.
News of the proposed Osaka IR was first made known in 2023, when Osaka IR Corporation signed an agreement with Osaka Prefecture and Osaka City for an integrated resort plan in Yumeshima, Osaka.
