MGM China (2282), one of the three casino subconcessionaires in Macau, is poised to start construction work for its second casino complex in Cotai.
In its annual results announced last week MGM China, which is 27.4 percent owned by businesswoman Pansy Ho Chiu-king, the company said the design was ready.
“We have finalized a design of the Cotai project and will focus on the commencement of the construction works,” the company said in its stock exchange notice.
In an accompanying press release, the company said the general building plan has been approved and it would hold an official ground breaking ceremony this week.
MGM China plans to build an integrated casino complex on a plot of land of size 17.8 acres at the Cotai reclamation between Tai Po and Coloane.
On completion in three years’ time at a price tag of HK$20 billion excluding land cost and interest, the complex would have 500 gaming tables, 2,500 slot machines and 1,600 hotel rooms.
Asked about the tight construction period, one cost consultant was confident MGM would be able to finish on time.
“City of Dreams was done in that time although admittedly when resources were easier to come by from Hong Kong. However if they can get mainland China labour without problems or [onerous] regulation then three years will be OK,” the consultant said.
Last October, MGM China formally agreed the land premium with the Macau government and made an initial payment of about HK$437 million.
The formal land concession agreement for Cotai was only completed last month after MGM China agreed the land premium with the Macau government last October and made an initial payment of about HK$437 million.
The company already has one casino operating which opened for business in December 2007, the MGM Macau with 427 gaming tables and 1,247 slot machines.
For the year ending 31 December 2012, profit attributable to shareholders was HK$4.53 billion, up 38.4 percent over the year before.
Total revenue edged up 7.3 percent in 2012 to HK$21.77 billion.