Additional Marina Bay Sands Changes Cost Las Vegas Sands $1 Billion
Las Vegas Sands (LVS) has agreed to pay an additional $1 billion to Singaporean authorities for changes to the planned expansion of the Marina Bay Sands (MBS) casino complex. The updated agreement was reached between Marina Bay Sands Pte Ltd, the subsidiary managing the property, and the Singapore Tourism Board.
LISTEN TO THIS ARTICLE:This payment will enable the company to increase the allocated gaming area within the project and make other modifications to the expansion plans. Under the terms of the agreement, the additional payment supplements an earlier upfront premium of $963 million that LVS paid in 2019.
Related: Las Vegas Sands May Need Record Loan for Marina Bay Sands ExpansionThis initial payment secured a lease for the land parcels associated with the expansion project through August 2066. The latest $1 billion payment reflects changes in the allocation of gross floor area and the acquisition of new gaming and ancillary spaces as approved by the Singapore Tourism Board.
The expansion, known as MBS IR2, is part of a larger investment plan announced by LVS in October 2023. The company has agreed to an $8 billion development budget for the project.
This figure includes $2 billion allocated for land premiums, $4.7 billion for design, construction, and associated costs, and $1.3 billion for pre-opening and financing expenses. The revised plans outline the addition of a fourth tower with more hotel rooms, an expanded casino space, a 15,000-seat arena, retail outlets, restaurants, and MICE spaces.
More Business News
Billions in Investments
According to the updated agreement, the total development investment for the project must meet or exceed SGD 3.06 billion (approximately $2.23 billion). These terms build upon a previous supplemental agreement reached in March 2023, with a construction commencement deadline of July 8, 2024, and a completion target of July 8, 2029.
Delays have affected the MBS IR2 project timeline, pushing the start of construction back several years. LVS attributed the delays to modifications in the development plan, which required additional approvals and changes to the allocation of floor space.
These adjustments included the purchase of 21,527 square feet of approved gaming space and 107,639 square feet of ancillary space, both sanctioned by the Singapore Tourism Board. The company stated that it has assumed liability for the land premium costs associated with these changes.
The agreement, finalized on January 8, solidifies the terms for the project's revised scope and establishes a framework for LVS to proceed with the expansion. The company emphasized its commitment to fulfilling its obligations under the development agreement and securing the long-term growth of Marina Bay Sands as a premier integrated resort in the region.
RELATED TOPICS: Business
Latest News
Most Read
Must Read
Interviews
When Helping Others Is a Life-Long Mission - An Interview with Gordon Moody CEO, Monica Shafaq
Dec 17, 2024
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Additional Marina Bay Sands Changes Cost Las Vegas Sands $1 Billion