Details Emerge for $90M Canadian Casino

By Barbra Murray, Contributing Editor

-- Plans for a new destination casino in New Brunswick, Canada move closer toward realization as developer Sonco Gaming New Brunswick L.P. divulges details of the mixed-use property.

The $90 million project will carry the distinction of being the first casino in New Brunswick. The group behind Casino New Brunswick is a joint venture involving Canadian companies Sonco Gaming Inc., Clairvest Group Inc. and Riseley Gaming Inc., and Las Vegas-based Navegante Group Inc. Financing for the project will consist of $54 million of senior bank debt and $36 million in equity. Clairvest and its Clairvest Equity Partners III L.P. fund will contribute approximately $32 million of the equity, which will leave the company with a 90 percent ownership interest in the development.

With a location near the Trans-Canada Highway in the tourist community of Magnetic Hill, Casino New Brunswick will encompass three structures that will be linked by an interior corridor. The first building will house the gaming facility, while the remaining two structures will feature a 128-room hotel and the 1,500-seat Palladium entertainment and convention center, respectively. Construction of the complex is on target to reach completion in mid-2010.

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