Osaka Plans Soon RFP for Yumeshima Phase 2 to Support MGM Osaka

Osaka city authorities say they will begin a request for proposal process between late June and early July for facilities in Phase 2 of Yumeshima, the artificial island in Osaka Bay that will host MGM Osaka, Japan’s first integrated resort with a casino. The plan is tied to the wider development of the site, which is meant to support the future casino resort project.

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Phase 2 Developer Search

After a meeting on Wednesday, the city announced it plans to pick a developer for Phase 2 by winter in the fiscal year 2026-2027. They estimate the Phase 2 costs will be around JPY1 trillion, or US$6.25 billion. Officials said the area is intended to back the MGM Osaka scheme, which is being built as the core of the larger project.

The whole MGM Osaka project is worth JPY1.51 trillion and involves Osaka city and prefecture. It includes partners like MGM Resorts International, Orix Corp from Japan, and some local firms too. Everything’s set to wrap up by the end of 2030, and this covers Phase 1 mainly.

Two-Step Selection Process

According to GGRAsia’s Japan correspondent, Osaka city will use 2 steps to select the Phase 2 developer. The first step will examine the content of the proposals, while the second will involve a price competition for the purchase of the relevant piece of land. The land area involved is said to be about 42 hectares, or 103.8 acres.

The RFP for Phase 2 had originally been planned for last year, but it was delayed after changes were made to the master plan at the request of the Kansai Economic Federation. Those revisions led to a smaller commercial-sector footprint in the updated Phase 2 master plan 3.0.

Revised Yumeshima Plan

Now, in the newest setup, out of the original 50 hectares set for commercial stuff, the plans changed. They carved out parts to create different areas. There’s a 2.9-hectare memorial park, a 1.5-hectare spot for an Osaka Healthcare Pavilion Site Utilisation Zone, and another part of 3.6 hectares that is still up in the air for what else might go there.

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The changes shape what can be developed on the site and also frame the selection process now moving ahead. Osaka city’s updated timeline suggests the project has entered a more active stage after the earlier delay.

Proposals Move Together

At Wednesday’s meeting, the Osaka city authorities said that on May 27, 2 groups that had previously submitted Phase 2 proposals judged to be excellent by the authorities decided to merge their efforts. One group was led by Obayashi Corp and Kanden Realty & Development Co Ltd.

Obayashi Corp and Kanden Realty & Development are also among the minority investors in the MGM Osaka scheme itself. One group, headed by Obayashi Corp along with six other firms, wanted a big arena, motorsports spots like a racing track, an auto-themed park, and a luxury hotel. 

The second proposal, led by Kanden Realty & Development and supported by four more big names, proposed something entirely different: a resort zone packed with luxury hotels, water parks, and various shopping and entertainment options.

Final Site Direction

With the RFP set to begin soon, Osaka city is moving toward the next stage in defining what Yumeshima Phase 2 will become. The selected developer will help shape a site that is meant to support the broader MGM Osaka project while adding new commercial and leisure functions to the island.

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Source: GGR Asia