THE M3: SJM INTERESTED IN SITES 7&8; GALAXY

The Macau Metro Monitor, September 7th 2010

 

SJM COVETS SANDS'S LAND WSJ

SJM CEO Ambrose So said his company is interested in sites 7 & 8, which Sands China has already invested $102.3 MM.  Sands China acting CEO Mike Leven said Sands "certainly will defend (its) positions on sites 7 & 8" and that historically when the government has allowed operators to invest in land, they've eventually gotten the rights to it.  However, recently, the government warned that undeveloped land on Cotai may be taken back.

 

So added that he expects land ownership rights will be granted for SJM, Wynn Macau and MGM Macau by the end of this year.  SJM, which has registered names of certain James Bond characters for its new casino project, will build in stages and will talk to its neighbor (the Venetian if it gets sites 7 and 8 or Wynn if it is stuck with its original land claim, which is not viewed as a prime spot) to attempt to increase connectivity between the casinos, said So.  Unlike the crowded peninsula, Cotai casinos are more spread out.  So also forecasts 40-45% growth in GGR for 2010 and brushed away concerns of a slowdown in capital flow from China.  "The (Chinese) government is pumping out more money," he said.


SJM EYES 7&8, MSC, HELLO KITTY, THE PEARL, ETC, ETC IM

IM thinks SJM has better options than sites 7 & 8.  According to IM, Macao Studio City is a much better site and SJM has already drawn up detailed plans for a casino called The Pearl, which is situated the northwest corner of the MSC site.  If MSC loses its right to run a casino, SJM can still put up a casino in the northwest corner.

 

SJM's other promising site on Cotai sits to the east of the strip, bridging the gap between Wynn's site and the site known as Hello Kitty, which will supposedly be developed under the SJM license.  Also, the light rail will run down that side of the strip.

 

GALAXY NO FEAR OF SINGAPORE The Standard

Vice Chairman Francis Liu said,  "Macau aims to lure customers from Greater China, while Singapore targets Southeast Asians.  Carving out market share is not our main target. Profit growth is more important. But our new resort hotel [Galaxy Macau] may help us increase market share and be our profit driver."