Plaza-led JV to go ahead with EUR 1.5b project in Budapest

A consortium of investors including emerging markets developer Plaza Centers has won a licence to build a major casino on a EUR 1.5bn mixed-use development in central Budapest. The Dream Island consortium, in which Plaza holds a 30% stake, said on Tuesday that the granting of the licence will enable it to commence construction of this major project which will have 350,000 m² of gross built area. The consortium also includes CP Holdings, the firm which owns the Danubius group of hotels (30% stake) as well as leading Hungarian commercial bank MKB (30% stake) and a company controlled by the managing director of the consortium (10% stake).

The scheme will include approximately 3,000 hotel rooms in several hotels of different categories as well as approximately 1,000 leisure apartments, a convention centre accommodating 3,500 delegates, a 1,500-seat opera house, a 3,500-seat multi-purpose theatre, a marina with anchorage space for 300 vessels, a shopping and entertainment centre, a Roman cultural museum, parking facilities for approximately 5,500 vehicles as well as a 40,000 m² casino.

The casino licence has been granted to the consortium for 20 years from the opening date of the casino, with a 10-year extension option. Plaza noted that the Hungarian government will not grant other casino licences during this time in the Budapest area. The casino is expected to be the largest and most prestigious destination of its kind in Europe, Plaza added.

CEO Ran Shtarkman said: 'Europe, unlike the rest of the world, has never had access to substantial gambling-led destinations such as Las Vegas and Macau. On completion, Dream Island will fill this gap for the 350 million people who live within two hours' flying time of Budapest, sparing them long continental flight times and enabling them to enjoy, relax, gamble and entertain themselves in a mega resort of the biggest magnitude in Europe.'