"Primorye" Integrated Entertainment Resort
"Primorsky Krai Development Corporation" JSC performs the function of the general developer Integrated Entertainment Resort territory, carries attracting investors and provides design and construction of engineering, transport and social infrastructure.
"Primorye" resort was established in accordance with the Russian Federation Government Decree No. 1213, dated August 20th, 2009; and the Federal Law "On state regulation of the organization and conduct of gambling and on Amendments to certain legislative acts of the Russian Federation" No. 244-FZ, dated December 26th, 2006.
Location – within the territory of Artemovsky urban district, in the area of Muraviinaya bay, in the north-western part of the Ussuriysky bay, 15 km from Vladivostok International Airport of and 50 km from the administrative center of Primorsky Territory (Vladivostok).
Total area of the gaming zone is 619 hectares. 263 hectares are allocated for development, the remaining territory is a perspective construction area.
Uniqueness of the project
Primorsky Territory has a great potential for the gambling business development. The "Primorye" Integrated Entertainment Resort (IER) project is attractive upon the following criteria:
◾ Unique geographical advantage: the project area is close to the economic centers of the South-East and North-East Asia, the sea front of the project area has high recreational opportunities;
◾ About 400 million people live within two hours of flight, in the north-eastern provinces of the People's Republic of China, Republic of Korea and Japan;
◾ Resources endow: Primorsky Territory public Universities provide annually training up to 1,000 professionals of the hospitality industry;
◾ The regional authorities provide tax holidays to investors;
◾ The Russian Federation Government and the Primorsky Territory Administration to support project "Primorye" IER
Objectives of the project
◾ Creating up-to-date entertainment infrastructure of international level, capable of ensuring the implementation of tourist and recreational potential of the Primorsky Territory;
◾ Increase of tourist flows to the Territory;
◾ Provide motivation for the development of the region's economy and create new jobs;
◾ Expansion of the Territory investment attractiveness
Total project scope of work
The project envisages the construction of complex casinos, 3,4,5 stars class hotels, sports and entertainment facilities, shopping and entertainment and administrative center, a cinema, a yacht club, a golf course, an aquapark, guest houses, restaurants and cafes.
Timing of the project
Construction of all investment projects to be completed by 2022. The project is implemented in stages as follows:
◾ Stage I - 2016
◾ Stage II - 2019
◾ Stage III - 2022
In accordance with the Supplementary Agreement to the Agreement No. 2, dated July 22nd, 2010 "On implementation of the investment project, entered into between the Primorsky Territory Administration and the developer", total volume of capital investments that "Primorsky Krai Development Corporation" JSC will engage in the construction of investment projects is 55. 6 billion rubles.
Primorsky Territory Socio-economic development
In the future, the project is expected to bring a significant economic impact for the Primorye Territory in terms of:
- Increase the number of jobs up to 20,000; and up to 30,000 - in related industries;
- Increase by 912 million Rubles in the annual volume of tax payments to the Federal budget;
- Increase by 3.3 billion Rubles in the annual volume of tax deductions to the consolidated budget of the Primorsky Territory;
- Increase the inbound tourism up to 8 million people.
Progress of the project
In order to attract the generally recognized market leaders in the development of the "Primorye", a work with "Galaviz & Company" and "Gaming Market Advisors" consulting companies was initiated; these companies are the specialists in international business development economic analysis, capital markets, and entertainment (tourism, travel, casino , hospitality, air) sector issues. Also the work with "Huntington Communications", a PR-company performing the process informational provision, was organized.
- major international investors interested in the development of integrated resorts were identified;
- comprehensive potential assessment of the "Primorye” gaming zone was carried out;
- proposals for the development, management structure and regulatory framework governing the activities in the gaming zone were prepared;
- "Request for Concept» (RFC) process was started.
- RFC was being conducted from July to October 2012.
After summing up the RFC, December 19, 2012, "Primorye" Integrated Entertainment Zone Committee which was formed by the Administration of Primorsky Territory, selected four companies to negotiate participation in the development of the project.
Work with investors
To date, 12 land lots have been subleased out, of which:
3 land lots are in sublease of the "First gaming company of the East" LLC. On September 6th, 2013, a memorandum of cooperation was signed in the framework of VI Pacific Investment Congress. As a result, 70% shares of the "First gaming company of the East" LLC were transferred to the group of Hong Kong and Taiwan investors in the end of October of 2013 in Hong Kong. The group is led by Melco International Development Limited, which is one of the world's largest private investment and management companies. Currently, the company develops new directions in the recreation and entertainment international market.
In April of this year international operator increased partnership stake in the project to 85%.
Stage I construction investment agreement for 130 million US dollars has been signed. Stage 2 investment amount will be as much as 570 million US dollars. Total area of the land lots - 244,806 sq. m.
4 lots are subleased by NagaCorp Ltd (Cambodia). The company is a leader in the field of entertainment and recreation, owns and operates the largest integrated gaming entertainment complex NagaWorld in Phnom Penh (Cambodia). This International operator is focused on the potential markets development in the Asia-Pacific region.
Also, Investment agreement for the amount of 350 million US dollars was signed in the framework of the VI Pacific Investment Congress. It is expected to develop "Primorsky Resort Entertainment City", including the casino, hotel, recreational infrastructure facilities with a total area of not less than 88,000 square meters. The total area of land for construction is 216,083 sq. m.
4 lots are subleased by a group of companies affiliated with "Royal Time" LLC (Kazan). The company has an experience in the field of entertainment and recreation business, and it organizes and conducts gambling activities in the "Azov-City" gambling zone (Krasnodar Territory). Amount of Investments in the construction of facilities is 225 million dollars. Total land area is 151,901 sq. m.
"Primorsky Krai Development Corporation" JSC is committed to the implementation of the design, construction and commissioning of network engineering and transport infrastructure, including the Stage 1 road construction, water networks, sanitation, electricity and heat dissipation.
All technical specifications for network connection were received in the amount required for the connection of investment projects to be aligned with the needs of investors.
Project preparation level on community facilities development:
- Electric power - 49 mW
- Power supply - 6334.6 meter3 / day
- Capacity of treatment facilities - 6334 m3 / day
- Heating capacity - 150 Gcal / h
- Stage I road length - 4.6 km
- Total roads length - 15.97 km
Construction of these facilities makes the project attractive for investors and helps to overcome possible infrastructure constraints without additional participation of investors in the construction of these objects, i.e. tenants do not bear additional costs for design and construction of transport and engineering infrastructure.