This is from May 2013...
Casino developer gave news in its 2012 annual report filed yesterday
Las Vegas Sands Corp. says it “expects to apply” to the Macau government for an extension on the May 2014 deadline it was set for completing Sands Cotai Central casino resort on Cotai.
LVS doesn’t say how much of an extension it’s likely to seek. It will be the third time it has asked for more time on its Cotai works. Previous changes have given three years’ grace from the original finish lines. In theory, failure to meet the government’s completion deadlines can result in the loss of a project.
LVS offers the deadline news in its 2012 annual report published yesterday. The Macau administration originally gave LVS a May 2014 deadline – 48 months from the date the relevant Cotai land concession became effective – to complete Sands Cotai Central.
The property is expected to cost at least US$4.2 billion (33.58 billion patacas) when finished.
The possible extension relates to the as-yet-unbuilt third phase – which the same filing says is for a fourth tower at the property – to be shared by a St Regis branded hotel and mixed use space. It is currently referred to by the company in the 2012 annual report as one where “We intend to commence construction…as demand and market conditions warrant it.”
In a previous regulatory filing in the United States, for the first quarter 2010, LVS said it wished to have condominiums at the St Regis tower planned for Sands Cotai Central – or ‘Parcels 5 and 6’ as the site was then known.
LVS stated in its 2010 filing: “The company has entered into agreements with Starwood and Shangri-La to manage hotels and serviced luxury apart-hotel units on the company’s Cotai Strip parcels 5 and 6, and for Starwood to brand the St. Regis Residences in connection with the sales and marketing of these condominium units.”
LVS and Sands China Ltd are already sitting on many hundreds of millions of dollars of unexploited Macau real estate in its Four Seasons apartments units across the road from Sands Cotai Central. That’s because the Macau government has not so far given the firms permission to sell to investors legal title to use those apartments.
Union Gaming Research Macau said in a report in June last year that the sale of title to the Four Seasons apartments could realise as much as US$900 million net of development costs and pre-tax.
If Sands does seek and is granted a time extension on Sands Cotai Central, it will be the third time it has successfully asked for more time on Cotai projects. LVS was first given an extension on the Cotai Parcel 3 site next door to Four Seasons in 2009. That year the deadline was pushed forward to April 2013.
The most recent Parcel 3 completion extension was granted in July last year. It mandated that The Parisian must be finished by April 2016.
Parcel 3 is now known as The Parisian, after the US$2.7 billion French-themed resort planned for it.
In the year ended December 31 2012, Sands China did write down US$100.7 million in land preparation costs after it finally relinquished rights to Parcels 7 & 8. In December 2010 the government decided to “not approve” LVS’s right to develop there.
Spok, I found this regarding the St Regis... Sands China Ltd chairman Sheldon Adelson announced yesterday that the gaming operator has already received the government’s licence to go ahead with the construction of a fourth hotel tower at Sands Cotai Central.
According to Mr Adelson, the US$450 million (MOP3.6 billion) tower will host a St. Regis hotel, with 460 rooms and serviced apartments.
It is to be ready within 18 months, he said.
The plans to add a St Regis tower to Sands Cotai Central were already known, but there was no schedule for it.
As already reported by Macau Business online, Mr Adelson also said yesterday that Sands China Ltd is planning to invest at least US$2.5 billion in the construction of a new casino resort on Cotai, to be located beside Four Seasons, in the so-called parcel 3.
According to Sands China executives, US$1 billion of the financing will come from the company’s equity base with the remainder coming from international banks.
Mr Adelson said construction is set to begin in 60 days, subject to government approval.
The project, to be named “The Parisian”, will include 3,300 hotel rooms and have a half-scale Eiffel Tower replica.
It is expected to take about three years to complete.
Meanwhile, Mr Adelson confirmed yesterday that the new Pacifica casino at Sands Cotai Central, inaugurated yesterday, opened with no new live gaming tables; instead, the units available there came from Sands China’s existing four casinos.
But Sands China executives said they were confident the government would grant the casino operator 200 new tables next year, once the current 5,500 live table cap expires.
Last I read, the bridge was a late 2015 or early 2016 event. MBS can sell the mall in 2017. Beth could be sold as soon as next year. If Japan got approved today, it would open in 2019.
Table performance lags for a reason at LVS properties in Macau. I think VIP is the cause and it's a privacy concern. Some of that concern comes from the ongoing US investigations and some from the Jacobs debacle. I could easily be wrong. It's just my guess for VIP's relative poor performance. Given all the effort put into improving VIP, it should be doing much better.
VIP is still the biggest percentage of GGR. With mass market growing in importance and some VIP being reclassified as premium mass, that helps LVS increase table productivity, but it masks the VIP problem. VIP might be getting better, but IMO it still lags where it should be relative to LVS' table and size advantages. I'm hoping Chum's addition to LVS will help improve VIP.
I have not seen an anticipated date for the completion of the ST. Regis Tower. If I do I will post it.
The fall to third place in market share is disappointing to say the least. It tells me there is still something LVS does not understand about the Chinese. I would guess it's their fear of being exposed as VIP gamblers vs the existing cultural comfort levels with SJM? I also think double digit gains in GGR will be a lot tougher after Q1 2014 due to the outstanding year Macau has had this year. So, I think 2014 will be very difficult for an EPS at or above $1 per Qtr. There could also be political issues in the US that drives our stock market multiplier down. After that bridge is built, it's a Katie bar the door, new era for records via all the new casinos and hotel rooms...
Same loss for ERIC with Sprint. ERIC's loss is ALU's gain...