Osaka city has confirmed it will launch a request for proposal process for Yumeshima Phase 2 between late June and early July. It’s a real acceleration in the development timeline for the artificial island that will anchor MGM Osaka, Japan’s first integrated resort with casino operations.

The phase two project carries an estimated cost of JPY1 trillion (approximately US$6.25 billion). It’s a crucial piece of the broader MGM Osaka scheme, a JPY1.51 trillion undertaking developed in partnership with MGM Resorts International, Orix Corp, and local stakeholders. City officials aim to select a developer by winter 2026-2027, with the entire project scheduled for completion by end of 2030.

A delayed timeline finds momentum

The Phase 2 RFP process was originally scheduled for 2024 but stalled following revisions to the master plan. The Kansai Economic Federation requested modifications that reduced the commercial footprint, reshaping what developers could propose for the site. Those changes, reflected in the updated master plan 3.0, have now been finalised.

The revised allocation carves the original 50-hectare commercial zone into distinct precincts: a 2.9-hectare memorial park, a 1.5-hectare Osaka Healthcare Pavilion site, and 3.6 hectares reserved for future designated use. These constraints will shape the selection criteria and developer proposals moving forward.

Two leading proposals converge

Notably, two groups that previously submitted Phase 2 proposals judged excellent by authorities have elected to merge their efforts. The first consortium, led by Obayashi Corp and Kanden Realty and Development Co Ltd, had proposed an entertainment-focused development featuring a large arena, motorsports facilities, an auto-themed park, and luxury hotel accommodation. The second group, also fronted by Kanden Realty and Development with additional partners, envisioned a resort-oriented site centred on luxury hotels, water parks, and retail and leisure amenities.

Both firms hold minority positions in the MGM Osaka project itself. Frankly, that positions them with insider knowledge of the broader resort’s strategic direction. The merger suggests confidence that combined expertise could better position the joint proposal for selection.

A structured selection process

Osaka city will employ a two-stage evaluation methodology. Proposals will first be assessed on content and merit, followed by a competitive bidding phase for land purchase rights. The development parcel spans approximately 42 hectares (103.8 acres).

With the RFP now set to launch imminently, Osaka’s Yumeshima project enters a demonstrably more active phase. Phase 2’s development will substantially expand the island’s appeal beyond casino and gaming operations, creating a mixed-use destination designed to complement and support the flagship MGM Osaka resort. The convergence of leading proposal teams and a clearly defined timeline? It shows the city is positioning itself to move decisively into the project’s execution phase.