Las Vegas Sands May Finish Macao Project
Las Vegas Sands Co., the beleaguered casino operator who abandoned its Macao casino resorts and other developments in November when credit markets dried up, said it would likely continue the project if financing is found. The company said it needs another $2 billion to finish off three casinos and hotel towers.
It’s imperative that the company finance the project in the next year or risk losing the development in its entirety to the Macao government. According U.S. Securities and Exchange Commission filings, if Las Vegas Sands doesn’t complete development of one of its five land parcels by August 2011, it could lose its right to operate the Venetian Macao and any of its other Macao developments forever.
Meanwhile, while the Macao project was abandoned, Las Vegas Sands began completing Marina Bay Sands, a development of resorts, casinos and retail space in Singapore. The $5.4 billion project is slated to open later this year.
For whatever reason, perhaps based on the readiness of cash, Las Vegas Sands seemed to favor its Singapore development and has never abandoned it. In Macao, the casino operator is facing an uphill battle against the Chinese government and perhaps it was the better part of valor to abandon the project rather than throw good money (although they still couldn’t find the loans) after bad.
The big if is still whether Las Vegas Sands can get loans in this tight-fisted market, especially on risky Asian gambling developments. I’m not confident those funds are available, especially since Las Vegas Sands has spent the better part of a year trying to find them and the company itself is already $10.4 billion in debt.
Photo courtesy of the Four Seasons Macao
Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and personal finance. Her clients include the New York Times, Los Angeles Times, San Francisco Chronicle and Washington Post.
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