Sands confident on claim to Cotai plots
Local gaming operator Sands China is confident of being granted plots 7 and 8 in Cotai, despite rival Sociedade de Jogos de Macau (SJM) expressing interest in the area. “We are not changing our plans,” acting chief executive officer (CEO) Michael Leven told Macau Daily Times.
“We have submitted documents supporting a detailed development application on lots 7 and 8,” he said. After that, Leven added, Sands China received “site investigation and consolidation licenses” from the Government. The company was thus authorised to enter the area and “carry out the substantial works that have to date been completed”.
A month ago, the Sands China CEO said that around USD 162 million [MOP 1.29 billion] had already been invested in the two sites.
Meanwhile, the operator has continued to pursue the land concession “in a timely manner”.
We have received no indication from any relevant department that our applications are not proceeding in the usual course,” Leven said. “This is consistent with our experience with the development applications for our existing operating properties, and our current development on lots 5 and 6.”
As planned, Sands China will only turn its attention to sites 7 and 8 after completing a new resort on plots 5 and 6, slated for opening in December 2011 and the over USD 2 billion (MOP 16 billion) development plan for site 3. “The Government wants planned growth and we are conforming to their wishes,” Leven stressed.
Last month, the executive said the operator had “no immediate plans” for plots 7 and 8. Yesterday Leven reiterated that the development of this area will not be fast-tracked and that there was no need to search for extra financing.
“It is our understanding, based on advice from Macau legal counsel, that there is no reason to believe that a subsequent application by any third party will take precedence over our rights to this project.”
‘Everybody’s going there’
On Monday SJM CEO Ambrose So told Wall Street Journal (WSJ) that the company had sent a letter to the Government expressing interest in Cotai sites 7 and 8. Yesterday the chief executive confirmed to MDT that Stanley Ho Hung-sun’s company would be keen on both plots “if they should become available”.
On one of its latest reports to the Hong Kong stock market, SJM said it had “applied for land concessions for two parcels of land on Cotai, and entered into discussions regarding potential cooperation with owners of a site adjacent to one of these parcels” – likely to be Macau Studio City.
In the same report it said it “had also expressed its interest to the Macau government for other parcels should they become available”. “The group [SJM] is studying carefully the overall progress and prospects of Cotai and as at the current date does not estimate when it will undertake development of any of the above sites,” it added.
MDT contacted the Land, Public Works and Transport Bureau (DSSOPT), which denied having received any letter from Stanley Ho’s company. “DSSOPT has not received any letter from SJM expressing interest in Cotai sites 7 and 8,” the bureau stressed.
Regarding Sands’ request, DSSOPT added, “the application is making its way through our normal procedures.”
Sands China CEO Michael Leven took the opportunity to take a dig at rival SJM. “We are pleased that others wish to continue to build out the [Cotai] strip. We were there when no one wanted to be, so it confirms the original plan.”
Despite so far having no presence on Cotai, SJM has captured almost a third of Macau’s gambling revenue in the first half of this year. The operator is planning to expand to Cotai because “everybody’s going there,” CEO Ambrose So said.
Sands China and Melco Crown already have The Venetian and City of Dreams resorts respectively at Cotai, while Galaxy Entertainment is expected to open its Galaxy Macau resort early next year. Ambrose So expects more plots will be officially granted to the remaining three operators – MGM Macau, Wynn Macau and SJM.
SJM’s resort will be built in stages and the company’s CEO has vowed to talk to its neighbours in order to increase connectivity between the Cotai casinos.
In August the local gaming industry’s revenues increased by 40 percent year-on-year, the lowest monthly rise this year. Up to July, the sector was posting a revenue growth of 67.5 percent. Ambrose So believes the casino business will slow down even more in the second half of 2010 to wrap up the year with a 40 to 45 percent revenue increase, he told the WSJ.
http://www.macaudailytimes.com.mo/macau/...ent-claim-Cotai-plots.html |
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