Inside Asian Gaming

JANUARY 2018 INSIDE ASIAN GAMING 19 COVER STORY NagaCity Walk to US$392 million, plus perhaps half as much again for outfitting it. NagaCorp reports it’s spent a total of US$1.5 billion on the NagaWorld complex and that commercial real estate specialist Colliers International has valued it at US$5.1 billion. Low costs extend to labor and taxes in the single digits; the latter may change with pending gaming legislation that Naga says it wholeheartedly supports. Low overhead enables Naga to offer junket commission and revenue share deals that are at the top end of the market, as well as boosting NagaCorp’s bottom line. On the other hand, Naga executives believe Cambodia’s real and perceived lack of regulatory rigor has resulted in penalties from investors and bankers – exorbitant bank interest rate demands led Dr Chen to personally finance Naga2 via a convertible bond arrangement; he took payment in shares last August – and added costs of self-regulation, such as its biannual independent audits for compliance with international anti- money laundering standards. The overwhelming bulk of Naga2 rooms are in the hotel tower, but the VIP tower may become NagaWorld’s signature. The VIP tower features nine floors of suites, four per floor. Two suites per floor The Hall of Golden Chimes Chinese Restaurant “Naga has forged a partnership with the government to boost tourism, financially supporting Cambodian tourism offices in China and leasing three Airbus A320s for Bassaka Air, an international airline based in Phnom Penh.”