NEW YORK, Aug. 9, 2011 /PRNewswire/ -- Harbinger Capital Partners today announced that Pinnacle Entertainment, Inc. has closed on its $95 million investment in Asian Coast Development (Canada) Ltd. (ACDL), the owner and developer of the Ho Tram Strip beachfront complex of destination integrated resorts and residential developments in southern Vietnam. Harbinger Capital Partners is ACDL's majority investor.
As a result of the investment, Pinnacle has acquired a 26% equity interest in ACDL and rights to proportional representation on ACDL's Board of Directors; and secured a management agreement through 2058 (with the potential for a 20-year extension) for the second integrated resort of the multi-phase Ho Tram Strip destination resorts project.
The Ho Tram Strip will be Vietnam's first destination integrated resort and gaming complex and is scheduled to open in multiple phases. The multi-property resort complex is being developed by ACDL under an investment certificate from the Government of Vietnam, the first of its kind. The planned first resort of the Ho Tram Strip, MGM Grand Ho Tram, is currently under construction with a planned opening in 2013, and will be managed by MGM Hospitality, a subsidiary of MGM Resorts International.
The first phase of the MGM Grand Ho Tram will feature 541 luxury guest rooms and suites, a full spectrum of world-class restaurants and amenities, exquisite VIP accommodations, a conference center, and a spectacular entertainment area featuring 90 live table games and 500 electronic games. The second integrated resort of the Ho Tram Strip, for which Pinnacle has secured a management agreement, will be jointly developed by Pinnacle and ACDL, and owned by ACDL.
Pinnacle and ACDL expect that the second integrated resort, which will be branded as a distinct and premium resort, will be similar in project scope to the MGM Grand Ho Tram resort that is currently under construction.
About Harbinger Capital Partners LLC
Harbinger Capital Partners LLC is a multi-billion dollar private investment fund based in New York. The firm was founded in 2001 and employs a fundamental approach to deep value and distressed credit investing.
SOURCE Harbinger Capital Partners LLC