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US hedge fund tycoon Philip Falcone is pressing his bet that Vietnam will end its prohibition on domestic casino gambling, plowing another US$50 million into The Grand – Ho Tram, the megaresort that opened last summer on the country’s South China Sea coast about 70 kilometers from Ho Chi Minh City.
Privately held Asian Coast Development (Canada) Ltd, the investment group behind the $500 million Grand, announced the capital infusion, which was made by Mr Falcone’s Harbinger Capital, ACDL’s majority stakeholder.
The investment is the second show of faith in as many months in The Grand’s positioning as the largest casino in Vietnam and its first true destination-scale gaming resort. In July, Chinese hotel magnate and Macau junket investor Chien Lee bought in for US$20 million through his NewCity Capital. US casino operator Pinnacle Entertainment is also a minority investor and is slated to manage a planned expansion of the resort with a second hotel and casino.
Despite a beautiful beachfront location, The Grand’s three-hour distance from Ho Chi Minh by road has hampered it as in international drawing card in the absence of a locals market, and ACDL has high hopes for addressing that with a Greg Norman-designed golf course that opens next month.
“We are also extremely excited about the future development potential of our project,” Mr Falcone said.
The central government’s Ministry of Finance has submitted a package of regulatory reforms for consultation that include provisions for opening the country’s casino market for the first time to its 90 million citizens subject to certain income restrictions and other limitations. If approved by the prime minister’s office, which could happen before the end of the year, the expectation is that domestic play will be allowed on a trial basis at select venues, one of which, given the size of its investment, is likely to be The Grand.
Mr Falcone said he is “encouraged” by the progress the reforms have made to date.
Concurrent with Harbinger’s latest investment, ACDL also announced the promotion of CFO Stephen Shoemaker to president, chief executive officer and chairman of the board. The company describes him as a 30-year veteran of the hospitality and telecommunications industries with an “extensive background in developing strategy as well as overseeing financial operations and fund-raising activities”.
Mr Falcone said, “Stephen was part of the founding team of the Ho Tram Project, and someone with whom we have worked closely with as far back as when the Ho Tram Strip was an undeveloped beach front. He has been a dedicated leader and an exceptional contributor to the project.”
