Asian Coast Development Ltd., currently developing Vietnam's first large-scale integrated resort, has entered an agreement to receive a US$95 million investment from Las Vegas-based Pinnacle Entertainment.
The Canadian real estate company, also known as ACDL, is the developer of the Ho Tram Strip, a group of integrated resorts located on more than 400 acres of land in the southern province of Ba Ria-Vung Tau.
With the agreement, Pinnacle has acquired a 26 percent interest in ACDL, marking its entry to the "rapidly growing Asian gaming market," the casino operator said in a statement on Thursday.
Pinnacle said it will enter into a management agreement through 2058, with the potential for a 20-year extension, for the second resort of the multi-phase construction plans for Ho Tram Strip.
The Ho Tram Trip is located approximately 80 miles southeast of Ho Chi Minh City. The planned first resort of the beachfront project, MGM Grand Ho Tram, is under construction with a planned opening in 2013. It will be managed by MGM Hospitality, a subsidiary of MGM Resorts International.
"This transaction is an important endorsement for Vietnam's growing profile as a world-class tourism destination, and we look forward to opening the MGM Grand Ho Tram in 2013," Gamal Aziz, President and CEO of MGM Hospitality
Pinnacle said Ho Tram is "the ideal project" for Pinnacle Entertainment.
"We are delighted to be a part of Vietnam's strategic vision for the further development of its tourist industry, an investor in ACDL and a partner on the Ho Tram Strip project," said Anthony Sanfilippo, President and Chief Executive Officer of Pinnacle Entertainment. "Featuring luxurious amenities in a breathtaking oceanfront location, the Ho Tram Strip is sure to attract guests from throughout Asia."