SkyscraperCity banner
1 - 15 of 15 Posts

·
Registered
Joined
·
158 Posts
Discussion Starter · #1 ·
An artist's impression of the 'City of Dreams', a hotel and casino project featuring the world's first underwater casino to be built in Macau's Cotai island, is displayed in Hong Kong May 17, 2005. Developer Melco International Development Ltd. is selling $167.8 million worth of shares at a discount of up to 6.7 percent to the market price to finance the project, sources said on Tuesday. NO ARCHIVE NO SALES REUTERS/Handout


 

·
Pubescent Singaporean
Joined
·
570 Posts
this is really neat. with all this neat architecture in macau, macau is not only besting las vegas glitz wise but also with architecture. perhaps someone will come along now like venturi and theorise about the decorated sheds and ducks of this millenia, in Macau, in the context of a rapidly urbanising asia.
 

·
Pubescent Singaporean
Joined
·
570 Posts
the blue lights are also very much like a blade runner neon fantasy ala Ginza. i love how the casino is so understated and elegant, singapore's own casino will be taking a leaf out of this project i think.
 

·
Moderator
Joined
·
122,192 Posts
Underwater casino planned in Chinese gambling enclave of Macau
By MIN LEE
16 May 2005

HONG KONG (AP) - The battle for casino supremacy in Macau has moved to a new frontier.

The Macau government has tentatively agreed to grant land for the "City of Dreams" resort, featuring an underwater casino hall with a capacity of 450 gaming tables and 3,000 slot machines, one of its developers, Melco International Development Ltd. said in a statement seen Monday.

The hall "will be surrounded by water and marine life," Melco Group Managing Director Lawrence Ho said in the statement.

The $1 billion project will also house deluxe service apartment blocks, 2,000 hotel rooms, a shopping mall and a 4,000-seat performance hall over about 5 million square feet of floor space.

The resort will be located on Macau's Cotai strip, which developers hope to fashion as Macau's answer to the Las Vegas Strip, the statement said. The complex is expected to begin construction in the second half of 2005 and open in mid-2008.

Melco, which is linked to Macau casino tycoon Stanley Ho, is jointly building the casino resort with Publishing & Broadcasting Ltd., a media and gaming empire that is 36 percent owned by Australia's richest man, Kerry Packer.

Ho, who used to hold a casino monopoly in Macau, is beefing up his presence in this small Chinese territory after the government let in Las Vegas operators.

Sheldon Adelson, chairman of Las Vegas Sands, the owner of the Venetian hotel-casino, opened the Sands Macau last year. Las Vegas casino developer Steve Wynn is also building a casino in Macau.

Macau is expected to surpass Las Vegas as the world's biggest gambling market in 2005, with the territory's casinos projected to bring in more than $5 billion in gambling revenue as newly affluent mainland Chinese flood to Macau to gamble.

Macau is a former Portuguese colony that was returned to Chinese rule in 1999. It is about 40 miles west of Hong Kong.
 

·
Moderator
Joined
·
122,192 Posts
Melco tapping market for $2.4b - Company completes initial placement in effort to help finance Macau casino
Sandy Li and Anette Jönsson
18 May 2005
South China Morning Post

Melco International Development is trying to generate more than $2.4 billion through a series of fund-raising exercises to help finance an $8 billion Macau project featuring the world's first underwater casino.

Last night, the company successfully completed the placement of 70 million new shares at $18.28 each to raise $1.27 billion, the initial investment for its 60 per cent-owned City of Dreams development. The remainder is owned by Australia's richest man, Kerry Packer, and his Publishing and Broadcasting Ltd.

As well as the share placement, Melco said Deutsche Bank was preparing a preliminary proposal for a comprehensive debt-financing package.

Melco also plans to issue $1.17 billion in convertible notes to chairman Stanley Ho Hung-sun's family trust to acquire his 49.2 per cent stake of a 1.21 million square foot site designated for the City of Dreams.

Mr Ho's son, Lawrence Ho Yau-lung, managing director of Melco, yesterday played down the impact of such funding pressure, saying the joint venture would generate strong cashflow from City of Dreams luxury residential properties that would be up for presale next year.

He added that the company expected the whole project to recoup its investment by 2010 - 18 months after the mid-2008 completion date.

At the same time, the Park Hyatt casino resort on Taipa Island - which is scheduled to open in 2007 - will also contribute revenue.

The City of Dreams project's underwater casino hall will house 450 gaming tables and 3,000 slot machines surrounded by tropical marine life.

The Macanese project will also include two four-star hotels and one five-star hotel - with a combined 2,000 rooms, two luxury serviced apartment blocks measuring 1.5 million sq ft, a 4,000-seat performance hall and an upmarket shopping centre.

Clarence Chung, Melco's chief financial officer, believed about 33 per cent of the $8 billion would be needed next year and in 2007, bringing the company to its capital expenditure peak.

"But the amount of cashflow from property sales can cover the investment cost," he said.

Based on Macau's current market prices for luxury homes of between $2,322 and $2,787 per square foot, analysts said the joint venture should generate revenue of up to $2 billion if all 750,000 sq ft in the first residential block were sold.

Melco's $1.27 billion placement was about 1.5 times covered, according to a banker at sole bookrunner Credit Suisse First Boston.

The deal was launched yesterday morning, offering 70 million shares at $18.10 to $18.70 per share. The company was said to have tested the market for the slightly larger deal of 90 million shares priced at about $19 at the end of last week.

"They do have to find different investors as I don't think one market can provide the lot," said a banker unconnected with the placement.

The shares were priced at $18.25, which represented a 5.9 per cent discount to the closing price of $19.40 before the stock was suspended from trading on Wednesday last week.

Market sources said the discount was reasonable given the volatility surrounding Macau-concept stocks and the fact that the broader market had fallen 2.5 per cent while Melco had been suspended from trading.

According to one source, the shares were sold mainly to long-only funds operating in Europe and Asia.
 
1 - 15 of 15 Posts
Top