https://sigma.world/news/osaka-launches-yumeshima-phase-2-rfp-japan/
Osaka to launch Yumeshima Phase 2 RFP for $6.25B project in Japan
Written by Rajashree Seal
Fri, 05 Jun 2026
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Japan is preparing to open bidding for a project worth around JPY1 trillion (US$6.25 billion), with Osaka authorities set to launch a request for proposal (RFP) process for Phase 2 of Yumeshima, the artificial island that will be home to MGM Osaka.
The timeline was confirmed at a meeting on Wednesday, where Osaka authorities said they aim to select a developer for Phase 2 by the winter of fiscal year 2026-27. The Phase 2 development is estimated to cost around JPY1 trillion (US$6.25 billion) and is planned as a supporting development for the MGM Osaka integrated resort project.
The move marks a significant step in the long-term transformation of Yumeshima, where the JPY1.51 trillion (US$9.44 billion) MGM Osaka project is currently under construction. The resort, backed by Osaka prefecture and city, MGM Resorts International, Orix Corporation and a group of local investors, is scheduled for completion by the end of 2030 and forms the centrepiece of the island’s Phase 1 development.
Two-stage selection process planned
According to a GGRAsia report, Osaka City plans to adopt a two-stage process to select a developer for the Phase 2 site. The first stage will involve an assessment of development proposals submitted by interested parties. The second stage will be a price competition for the purchase of the land, which covers approximately 42 hectares, or 103.8 acres.
Osaka Mayor Hideyuki Yokoyama previously indicated that the recruitment process would begin once the Yumeshima Phase 2 Master Plan Ver. 3.0 is finalised, with developer selection expected around December.
The development area consists of land from the former site of Expo 2025 Osaka, Kansai, Japan, excluding areas designated for a memorial park and the Osaka Healthcare Pavilion legacy site.
Revised master plan delayed recruitment
The RFP had originally been scheduled for last year but was postponed following revisions to the Phase 2 master plan requested by the Kansai Economic Federation.
Under Master Plan Version 3.0, the original 50-hectare area earmarked for commercial development has been reduced. The revised plan allocates 2.9 hectares to a memorial park, 1.5 hectares to an Osaka Healthcare Pavilion Site Utilisation Zone, and a further 3.6 hectares for uses that have yet to be defined.
The draft master plan, compiled by Osaka Prefecture and Osaka City in April, sets out a vision of “urban development that inherits the ideals of the World Expo and realizes a ‘future society’ through the formation of an international tourist hub.”
According to the plan, the objectives include creating an entertainment city, developing a future-oriented urban environment that contributes to the Sustainable Development Goals, and promoting the demonstration, implementation and practical application of advanced technologies.
The site is divided into several districts, including a Global Entertainment and Recreation Zone, Gateway Zone, IR Collaboration Zone, Exchange Zone, Osaka Healthcare Pavilion utilisation area and Memorial Park Zone.
Officials said the Gateway Zone is intended to function as the entrance to Yumeshima, incorporating facilities that encourage the movement of people and goods while creating a sense of anticipation for visitors. The Global Entertainment and Recreation Zone is designed to attract visitors from around the world and offer experiences unique to the destination.
Consortiums combine efforts
During Wednesday’s meeting, Osaka City authorities also disclosed that two groups whose proposals had previously been assessed as “excellent” would combine their bids for the Phase 2 development.
The merger took effect on 27 May and brings together groups led by Obayashi Corporation and Kanden Realty & Development Co Ltd. Both companies are minority investors in the MGM Osaka integrated resort project.
The original Obayashi-led proposal, supported by six other companies, included plans for a large arena, motor sport facilities featuring a racing circuit, an automobile-themed park and a luxury hotel.
The Kanden Realty-led proposal involved partners including Keihan Holdings, Sumitomo Corporation, Takenaka Civil Engineering & Construction Co Ltd, Nankai Electric Railway Co Ltd and Yoshimoto Kogyo Holdings. Their concept proposed a resort complex featuring luxury hotels, water parks and a range of commercial facilities.
MGM Osaka construction progresses
The Phase 2 recruitment process comes as construction continues on MGM Osaka, Japan’s only approved integrated resort project. In May, MGM Osaka Corp announced changes to its leadership structure. Nobuki Watanabe became representative director and chairman from 1 May, succeeding Toyonori Takahashi, while Edward Bowers was reappointed representative director and president.
MGM Osaka Corp, a joint venture between MGM Resorts International and Orix Corporation, has also transitioned to a formal board structure comprising Watanabe, Bowers, MGM Resorts chief executive and president Bill Hornbuckle, Orix chief executive Hidetake Takahashi and Orix senior managing executive officer Shuuji Irie.
Speaking during MGM Resorts International’s first-quarter earnings call, Hornbuckle said: “Over 40 per cent of the foundation piles have been installed or completed” at the project site.
“The first concrete floor has been poured, and the first structural steel has been erected,” he added. “MGM Osaka remains on time and on budget for 2030 opening.”
Hornbuckle also stated: “I recently visited and approved our markup rooms, which I found exceptional, and we are opportunistic as ever, keeping in mind we expect to be the sole licence and operator in Japan upon opening.”
MGM Resorts said it expects to invest between US$200 million and US$225 million in the Osaka project during 2026 after contributing US$140 million in the first quarter. The company also disclosed guarantees amounting to JPY12.65 billion (US$81 million) covering 50 per cent of MGM Osaka’s obligations, alongside an additional uncapped funding commitment if required for completion and opening of the resort.
The development follows the Japanese government’s continued support for integrated resorts. Under the Fifth Tourism Nation Promotion Basic Plan approved in March, integrated resorts remain part of the country’s tourism and MICE policy framework. Japan has also scheduled a second round of IR district development plan applications from May to November 2027.
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