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As part of its ongoing expansion in Macau, Galaxy Entertainment Group Ltd (27:Hong Kong) (GEG) has announced its Galaxy Macau Phase 4 project, which comes in at a reported cost of MOP$13.01 billion (US$1.63 billion).
The Asian casino operator has enlisted Hong Kong-headquartered China State Construction International Holdings Ltd subsidiary, China Construction, to provide “construction and related services” for the development. Construction is reportedly scheduled to take just under three years to complete from the start date, which, according to Inside Asia Gaming, will take place seven days after receipt of the architect’s instruction.
Further details of the letter of intent include a MOP245m performance bond to GEG “to guarantee China Construction’s due performance of the relevant contract services,” while the operator will pay the construction company according to monthly evaluations to be carried out by external consultants.
The entire project will reportedly be funded by the Hang Seng Index constituent’s [GEG] internal resources.
According to the source, GEG along with its own Galaxy Cotai Project subsidiary stated that starting construction of Phase 4 was in the “best interests of the group,” so that development targets are maintained and to improve on the firm’s competitive positioning within Macau‘s gaming and hospitality market.
Late last year, the company stated that due to its strong balance sheet, the major impact of the COVID-19 pandemic would not hinder its expansion plans in Macau and Japan and that it “allows us to continue to invest into and upgrade our existing resorts and proceed with the planned opening of [Galaxy Macau] Phases 3 and 4.” Adding that timelines may be impacted, however.
With that in mind, GEG is reportedly set to launch Phase 3 of Galaxy Macau in mid-2021 after earlier last year having had to push back the original target date of late 2020.
In addition to increased gaming floor areas, the 3rd phase comprises 1,500 hotel rooms, along with the 16,000-seat Galaxy International Convention Center and 40,000 square meters of MICE (meetings, incentives, conventions and exhibitions) space, according to the current report.
“The Group has been proceeding with the development and expansion of the current footprint in Macau, and continuously reviewing and refining plans to ensure a world-class optimal development. Cotai Phase 4 has been one of the key development projects that GEG keep on proceeding.
“In order to maintain the development targets and improving competitive positioning, it is in the best interests of the Group to commence the relevant construction works.”
According to the Asian news agency, the Chinese state-owned construction contractor has been involved in the development of previous phases of the Cotai Strip resort, as well as Wynn Palace, Macau Tower, and City of Dreams, among other developments.
Source: Worldcasinodirectory, Worldcasinonews