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SJM says Lisboa Palace ready by 4Q 2017; No further action for Galaxy director

TAGs: Galaxy Entertainment Group, Macau, SJM Holdings

sjm-says-lisboa-palace-to-be-ready-by-4q-2017-no-further-action-for-galaxy-ent-directorMacau casino operator SJM Holdings Ltd. announced on Friday that it expects Lisboa Palace’s construction to be completed in the fourth quarter of 2017.

SJM Holdings mentioned the date of completion in a filing with the Hong Kong exchange, in which the company also announced that it is spending about MOP557 million (HK$541 million, US$71.4 million) on a new construction contract with one of its existing contractors, Macau-incorporated Iao Lek Engineering Company Ltd.

Iao lek would undertake certain basement excavation, reinforced concrete structure and general builder’s work for the Lisboa Palace project.

SJM broke ground on the Lisboa Palace–its first property on Cotai–in February. The Versailles-themed Lisboa Palace has an estimated cost of approximately $3.9b.

The Lisboa Palace complex will have three hotels—Karl Lagerfeld’s first hotel in Macau as well as the Lisboa Palace Hotel and the Palazzo Versace Macau—with a total of 2,000 hotel rooms, a number of Michelin-starred restaurants, a themed retail mall, a wedding pavilion and a multi-purpose theater for large-scale events. The resort will also provide up to 700 gaming tables and over 1,200 slot machines, pending the “obtaining of applicable licenses.”

Construction of the Lisboa Palace remains on schedule but market rivals such the $4 billion construction Wynn Palace announced that it will most likely not make its planned opening for the Chinese New Year 2016. The same goes for MGM Cotai, which also modified its opening date to fall of 2016 rather than rather than “early 2016” as stated previously.

NO FURTHER ACTION AGAINST GALAXY DIRECTOR
Meanwhile, Galaxy Entertainment Group Ltd. announced on Friday that James Ross Ancell, one the company’s independent non-executive directors, will not face further action after an investigation by the UK Environment Agency.

Ancell had been arrested in England on September 25, 2012 and released on bail without charge in connection with an investigation concerning Churngold Recyling Ltd., of which Ancell was a director.

“The principal issue is whether or not hazardous waste was recovered when, after processing by Churngold, it was sold for use in a construction project in England,” said Galaxy Entertainment in its October 15, 2012 filing.

Galaxy Entertainment also said in its October 15, 2012 filing that the investigation had “nothing whatsoever to do with the company and will have no impact on any of the businesses and daily operations of GEG and its subsidiaries.”

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