Parq Vancouver is the newest casino venue in Vancouver attracting attention with its futuristic design. In a period of uncertainty about its future, the casino complex management announced it has found the needed financing for its outstanding loans and guaranteed its future operation. The casino venue operation is affected by the money-laundering crackdown across British Columbia.
The province has been a topic of wide discussion not only across Canada but also in the US and worldwide, mainly because of the way it approaches issues and tackles the ongoing money laundering crisis. Former Mountie Peter German submitted his second report on cash washing in the province to the British Columbia government and a review is in progress.
Parq Vancouver Finances Loans
Parts of this second report have already been issued, revealing that an estimated CA$2 billion has been washed via the local gambling field over the span of the past 12 months only. The province-wide crackdown has affected negatively Parq Vancouver’s gaming revenue. Fewer people are willing to make their way to the premium venue and enjoy its gaming offerings.
In turn, the loans that once fueled its construction and subsequent work on the interior of the casino floors and the adjacent more family-friendly offerings also suffered the consequences. The last days of April saw Parq Holdings LP struggle to meet the mandatory deadline for loan payment.
This was concerning for everyone in the field affected by this financial struggle, as well as the community bagging regular allocations thanks to gaming revenue. Now the company g operation on site announced that it has refinanced both the first-lien and second-lien loans with a fixed rate financing structure.
The overall amount of the debt reaches CA$450 million in order to finish the casino venue, two Marriott-branded hotels – the Douglas, and JW Marriott, as many as eight dining locations, and a conference area for various purposes and congregations.
New Entity Joins Parq Holdings
The interest rates of said loans reach up to 12 percent meaning that the casino complex had to brace for impact as soon as it launched operation. Over its first 12 months of operation it had to pour its income straight into the finding of the loans. Every quarter saw a mandatory CA$30-million payment covering the loan and the location relied on both locals and foreigners to fuel it.
As previously revealed by Casino Reports, a few months since the beginning of operation, representatives of Parq Vancouver’s competitive casinos shared that no slowdown or earnings decline was registered after facing the competition. Just like every new location it was able to attract the attention of many casino patrons and individuals interested in more family-friendly offerings.
Parq Vancouver casino soon ranked among the largest employers in the city, and the highest-paying one, as well. In addition to the refinancing, Dundee and PBC Group also announced there is a new addition to the Parq Holdings structure. For the time being its name has not been revealed, but it was confirmed it is a Canadian hospitality company operating in several markets that would aim to boost Parq Vancouver’s future operation.