Company Takes Bigger Chunk Of Hungary’s Dream Island
Plaza Centers N.V. has announced the acquisition of an additional 27 percent stake in Hungary’s Dream Island project. For Plaza and joint venture partner MKB Bank, the move increases ownership of the planned resort complex to 87 percent.
The stake was purchased from CP Holdings Ltd., a company controlled by Sir Bernard Schreier, for about €21.4 million. The agreement calls for €12 million in cash and the assumption of €9.4 million of debt, which the statement said represents 27 percent of the project’s net debt liability.
Dream Island is now 87 percent owned by Plaza and MKB Bank, 10 percent by a company controlled by the managing director of the consortium, and the remaining 3 percent owned by another party and minorities.
The Dream Island project represents one of the largest leisure developments currently planned for Europe. The casino will measure 40,000 square meters and incorporate over 200 tables and 4,000 slot machines. Hotels of various categories will provide 3,000 rooms, and around 1,000 leisure apartments will be built. Non-gaming amenities include a convention center capable of handling gatherings of 3,500 delegates, a 1,500-seat opera house, a 3,500-seat multi-purpose theater, a shopping and entertainment center featuring a designer’s avenue, and parking for 5,500 vehicles.
As the name suggests, Dream Island will in fact occupy the southern end of Obuda Island, in the middle of the Danube River, situated right between the two distinct sections of Budapest. Total gross built area will exceed 35 hectares, over 86 acres. A marina that can handle 300 craft is included.
The consortium has received an exclusive casino license, valid for 20 years from the date of opening of the casino and with an option for a 10-year extension. The conditions of the license state that no other major casino licenses will be granted by the Hungarian government in the area of Budapest during that time.
