The Macao government has extended LV Sands’ deadline to develop a plot on the Cotai Strip referred to as Parcel 3, until April 2016. The company requested an extension, as it will fail to meet the initial April 2013 date due to slowing growth in the gaming industry.
Construction is yet to commence on Parcel 3, which is set to become the operator’s biggest project after the $5bn Sands Cotai Central® resort that opened in April. In order to receive government approval, the proposed facility will target the mass-market and feature “family-orientated” amenities, according to Sands.
In a statement made to the Hong Kong Stock Exchange on Monday, the government noted that LV Sands would imminently be notified about a penalty amount for delaying the start of construction.
The Parcel 3 resort will be connected to the company’s Venetian Macao and Four Seasons Hotel Macao. All of the company’s properties on the Cotai Strip, including The Venetian Macao and Sands Cotai Central®, will be connected through a series of indoor and covered outdoor walkways and moving sidewalks.
Sheldon Adelson, LV Sands CEO, said today that the company has already sought approval of the design plans and will soon unveil key features of the integrated resort to the public.
“We think the new concept will be extremely well-received and, as with our existing properties on the Cotai Strip in Macao, we will invest in a wide array of leisure and business amenities,” said Adelson, “This property in particular will further enhance our growing MICE [meetings, incentive, conventions, exhibitions] business and will also feature a variety of amenities designed to encourage more families to visit Macao.”
In regulatory filings with the US Securities & Exchange Commission, Sands said it applied for the extension because it would be unable to meet the April deadline. If it had not been granted the extension, it could have lost its land rights and its $96.7m investment made in construction costs and land premiums.
The company was initially required to complete the development by August 2011 and the Macao government had already given it one extension.
“We are very pleased to have secured an extension of our construction deadline for our newest integrated resort in Macau,” explained Adelson, “We have already undertaken extensive design work on the project and plan to start construction by November.”