Las Vegas
Sands has announced that it will temporally stop the development of two
projects planned in Macao to concentrate in other
projects located in Singapore
and Pennsylvania.
The decision to suspend the construction works on the Cotai Strip in Macao comes after Sands
announced a capital raising program that will help the company to raise over $2
billion in funds including new funding
from Chief Executive Sheldon Adelson. The announcement is expected to
cool off recent concerns regarding the company’s liquidity and capability to
pay its current debts.
Las Vegas
Sands president and chief operating officer, William Weidner, released a statement
this Monday in where the company informed its decision to hold the construction
of its $600 million Strip condominium tower and other development plans in China. Las
Vegas Sands also communicated that it will focus its capital and time to
conclude the Marina Bay Sands, in Singapore,
and Sands Bethlehem in Pennsylvania.
According to this statement, the Macau’s
projects will resume “at an appropriate time in the future, to the extent
capital becomes available on acceptable terms”.
The Las
Vegas Sands project on the Cotai Strip included more than a dozen hotels and over
20,000 rooms. Until now, Las Vegas Sands has launched the Venetian Macao, which
began operations last year, and the Four Seasons Macao hotel, which was opened
in August, 2008. Also, Rob Goldstein, president of the Venetian Resort and
Casino and the Palazzo Resort, said the company will apply a series of measures on its Las Vegas
Strip properties to reduce the operational costs in about $100 million.
Las Vegas
Sands said it is already settling the final details to build the $4 billion
Marina Bay Sands in Singapore.
The company said the capital raising program would help fund the Singapore
development. So far, two Singapore-based banks have joint the list of eight
banks hired to put together more than $3.3 billion in loans for the project.
In Bethlehem, Pennsylvania,
the company is developing the Casino area inside the $675 million Sands
Bethlehem, which will include a 3,000-slot machine casino, restaurants and a
3,500-space parking garage. However, Sands announced that some areas, including
a shopping center and other entertainment venues, will be delayed until further
announcement. The casino is expected to open by the end of June.
Las Vegas Sands President, Bill
Weidner said the changes announced could decrease the company’s expenses by
$1.8 billion. The capital raising program is also expected to help the company to
meet some of its current obligations, including the more than $3 billion in loans
acquired over the last years.
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