Las Vegas Sands shelves Macau plans
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US gaming hospitality giant, Las Vegas Sands, has put its Macau development plans on hold as it struggles to raise funds for the project, the South China Morning Post has reported. The company had planned to raise US$5.25 billion in loans for the expansion of its Sands Macau development, including funding for a hotel resort complex. Due to the on-going credit crunch however, the project has been shelved.
“Right now it is a pulled deal. It will come back when they cook up a new shape and new price,” the Hong Kong-based newspaper quoted an unnamed source who was “familiar with the situation” as saying.
Earlier this year Sands investigated the possibility of a US$7 billion financing package for its subsidiary Venetian Macao and prospective lenders were invited to visit the site in July. But after a cool response from the visit, the company cut its fund-raising target to US$5.25 billion.
The casino company wanted the money to complete the construction of a massive 6,400-room Cotai casino resort complex opposite the Venetian. Budgeted at US$3.3 billion, the project is to include Sheraton, Shangri-La, Traders and St Regis hotels as well as St Regis-branded serviced apartments.
A Nevada-based spokesman for Las Vegas Sands reportedly declined to comment.
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