Las Vegas-based casino owner and operator Pinnacle Entertainment Inc. (NYSE: PNK) is investing $95 million in Vancouver-based resort developer Asian Coast Development (Canada) Ltd. (ACDL) for the development of a resort project in Vietnam, ACDL announced this morning.
In exchange, Pinnacle will gain a 26% equity interest in ACDL.
ACDL is the owner and developer of the Ho Tram Strip beachfront complex of destination integrated resorts and residential developments in Southern Vietnam, located 130 kilometres southeast of Ho Chi Minh City.
According to ACDL, the Ho Tram Strip will be Vietnam’s first destination integrated resort and gaming complex and is scheduled to open in multiple phases, beginning in 2013.
The first resort of the Ho Tram Strip, the MGM Grand Ho Tram, is currently under construction and will be managed by MGM Resorts International (NYSE: MGM) subsidiary MGM Hospitality.
ACDL has also announced that Pinnacle will enter into a management agreement through 2058 for the second integrated resort in the multi-phase project.
“This transaction is another major milestone for ACDL and accelerates the development of our second resort and the entire Ho Tram site,” ACDL CEO Lloyd Nathan said in a press release.
“We now have two of the world’s leading gaming companies managing our integrated resorts in Vietnam, confirming Ho Tram as the next large-scale destination opportunity after Macau and Singapore.”
Calls to ACDL were not returned by press deadline.
Jenny Wagler
Twitter: @JennyWagler_BIV