The world-famous casino operator and developer NagaCorp Ltd revealed that the construction of its Naga 3 establishment, which has been planned as an addition to its NagaWorld gaming complex in Phnom Penh, has been postponed by four years.
The delay has been enforced by the company itself, which is currently considering some options in regard to the completion of the project. The initial date for completion of the design and build agreement was set for September 30th, 2025 or before that.
On June 4th, in a filing to the Hong Kong Stock Exchange, NagaCorp shared that it was considering different options regarding the development of the Naga 3 establishment in terms of matching capital expenditure (CapEx) with revenue generation “carefully and seriously”. The casino operator’s filing noted that the chance of resizing the Naga 3 project was among the main options NagaCorp has taken into consideration.
The company further explained that the decision was due to the external geopolitical macroeconomic environment and the increasing pressure that global inflation has on the performance of businesses operating in different economic niches, including casinos and gambling.
NagaCorp revealed that, on June 3rd, 2023, one of its units and project contractor signed an auxiliary agreement to update the initially announced completion date for the design and build agreement to September 30th, 2029 or before that. The company also noted that the exact date for the completion of the Naga 3 project would be subject to other adjustments, as well.
Naga 3 Set to Be Completed in September 2029 Following Spending Delays in 2022
A few years ago – in 2019 – before the world got shaken by the Covid-19 pandemic that caused severe disruptions in casino-sector trading, the company and some market analysts used to describe Naga 3 as a project worth $3.5 billion. Half of the project’s funding was set to be provided by Chen Lip Keong, the founder and chief executive officer of NagaWorld Ltd.
In the latest annual report that the company published in March this year, NagaCorp actually mentioned that once the latest phase of the project is finalized, the combined complex of Naga 1, Naga 2, and Naga 3, is set to feature about 5,000 hotel rooms, 4,500 electronic gaming machines, and 1,300 gaming tables. At the time when the announcement was made, the company noted that piling work for the Naga 3 project was “96% completion”. NagaWorld’s spending on the complex was subject to a slowdown in 2022, relative to 2021.
For the time being, NagaCorp holds an exclusive license allowing it to operate casinos in Cambodia’s capital Phnom Penh and its surroundings. In December 2006, the company started operating with its NagaWorld property, which is currently referred to as Naga 1. Then, in November 2017, the second phase of the project – Naga 2 – was opened to provide an expansion for the property, with Naga 1 and Naga 2 currently forming the NagaWorld Complex. The two parts of the property are interconnected via NagaCity Walk – an underground shopping mall.
