SJM Holdings Ltd. (00880.HK) has revised the construction cost of its new integrated resort in Macau’s Cotai area to HK$30 billion (US$3.85 billion), chairman Ambrose So said on Thursday.
The budget has been revised upward due to stronger commodity prices and rising salary costs, he told reporters in Macau. Last year, SJM had pegged the project cost at HK$25 billion.
Despite the higher expense, the company does not have any financing needs, he said, suggesting that SJM may not have to raise fresh capital.
In other comments, So said he wants the Macau government to allow casino operators to hire non-locals as dealers in view of the manpower challenges.
SJM held a ground-breaking ceremony Thursday to officially announce the construction of its Lisboa Palace integrated resort in Cotai.
The resort will provide up to 700 gaming tables and more than 1,200 slot machines across a gaming floor of about 27,000 square meters. But more than 90 percent of the total building area of 521,435 square meters will be reserved for non-gaming facilities and three hotels comprising around 2,000 rooms.
The project is expected to be completed in 2017. It will mark the first Cotai footprint for SJM. The company’s existing properties in the gambling enclave are all in the main Macau island. The new resort is adjacent to a land plot owned by SJM’s managing director Angela Leong On-kei, fourth wife of gaming tycoon Stanley Ho.
Leong said the site will be developed into a theme park and that details of the plan will be unveiled within this year.
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