Cambodia’s NagaCorp suspends casino project in Russia’s Vladivostok

The planned Primorsky Entertainment Resort City in Vladivostok by NagaCorp

Phnom Penh-based hotel, gaming and leisure company NagaCorp, the operator of Cambodia’s largest hotel and gaming resort NagaWorld, said it would halt its $350-million gaming and resort development project in the eastern Russian city of Vladivostok indefinitely amid “uncertainties” surrounding the project.

The Hong Kong-listed company controlled by Chinese-Malaysian businessman Chen Lip Keong said in a bourse filing late on March 3 that it faces “various uncertainties in respect of the group’s gaming and resort project in Vladivostok, Russia” and would therefore “like to invoke the force majeure clause set out in the investment agreement and suspend its performance thereunder.”

It would “suspend the development of the project indefinitely until the circumstance is clearer,” NagaWorld said. Company shares fell more than eight per cent on the following trading day.

Impact on tourism from Russia’s invasion in Ukraine

The reasons for invoking the force majeure clause were not given in the filing, although it is almost certainly linked to Russia’s invasion of Ukraine and uncertainty over how this will impact domestic and foreign tourism in the near future.

The casino resort in Vladivostok is NagaCorp’s second such project after NagaWorld in Phnom Penh. The investment agreement for the “Primorsky Entertainment Resort City” was signed in 2013 and construction began in 2016 with initial plans to finish the resort and commence operations by 2022.

The resort, located on Russia’s pacific coast west of Vladivostok overlooking the city’s bay, was planned to comprise 2,000 hotel rooms and residences on a development that also incorporates a total of 60,000 square meters of theatres, spas, a water park, retail, food and beverage outlets in addition to a gaming floor with 100 tables and 500 machines. In the long run, the project should have developed into an “integrated entertainment zone” and a “cosmopolitan and comprehensive community of not less than 20,000 people.”



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[caption id="attachment_38278" align="alignleft" width="300"] The planned Primorsky Entertainment Resort City in Vladivostok by NagaCorp[/caption] Phnom Penh-based hotel, gaming and leisure company NagaCorp, the operator of Cambodia’s largest hotel and gaming resort NagaWorld, said it would halt its $350-million gaming and resort development project in the eastern Russian city of Vladivostok indefinitely amid “uncertainties” surrounding the project. The Hong Kong-listed company controlled by Chinese-Malaysian businessman Chen Lip Keong said in a bourse filing late on March 3 that it faces “various uncertainties in respect of the group’s gaming and resort project in Vladivostok, Russia” and would therefore “like to invoke the...

The planned Primorsky Entertainment Resort City in Vladivostok by NagaCorp

Phnom Penh-based hotel, gaming and leisure company NagaCorp, the operator of Cambodia’s largest hotel and gaming resort NagaWorld, said it would halt its $350-million gaming and resort development project in the eastern Russian city of Vladivostok indefinitely amid “uncertainties” surrounding the project.

The Hong Kong-listed company controlled by Chinese-Malaysian businessman Chen Lip Keong said in a bourse filing late on March 3 that it faces “various uncertainties in respect of the group’s gaming and resort project in Vladivostok, Russia” and would therefore “like to invoke the force majeure clause set out in the investment agreement and suspend its performance thereunder.”

It would “suspend the development of the project indefinitely until the circumstance is clearer,” NagaWorld said. Company shares fell more than eight per cent on the following trading day.

Impact on tourism from Russia’s invasion in Ukraine

The reasons for invoking the force majeure clause were not given in the filing, although it is almost certainly linked to Russia’s invasion of Ukraine and uncertainty over how this will impact domestic and foreign tourism in the near future.

The casino resort in Vladivostok is NagaCorp’s second such project after NagaWorld in Phnom Penh. The investment agreement for the “Primorsky Entertainment Resort City” was signed in 2013 and construction began in 2016 with initial plans to finish the resort and commence operations by 2022.

The resort, located on Russia’s pacific coast west of Vladivostok overlooking the city’s bay, was planned to comprise 2,000 hotel rooms and residences on a development that also incorporates a total of 60,000 square meters of theatres, spas, a water park, retail, food and beverage outlets in addition to a gaming floor with 100 tables and 500 machines. In the long run, the project should have developed into an “integrated entertainment zone” and a “cosmopolitan and comprehensive community of not less than 20,000 people.”



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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