SJM Holdings Receives Final Approval for Cotai Gaming Resort
After receiving approval to develop a resort on the Cotai strip, SJM Holdings now needs to focus on obtaining construction approval - ChanPark International.
Online, May 15, 2013 (Newswire.com) - Asia's largest gaming company by revenue, SJM Holdings Ltd., received final approval from the government this week to develop its first resort in Macau's Cotai area. The Cotai Strip is a major land reclamation project in Macau that is primarily occupied by gaming resorts and is rapidly gaining in popularity. SJM had been eyeing the area for some time, but until this week's announcement no formal confirmation of their agreement had been made.
Agreeing to pay the government 269 million dollars, SJM has been given the go ahead to develop 70,468 square meters into its first gaming resort in the highly visited area. Currently, SJM operates the majority of gaming centers in Macau, but has no presence on the Cotai strip. With plans to develop more than 521,400 square meters of total resort floor area including a 5 star resort and gaming destination, the approval was a big boost for the company.
After news broke of the approval, SJM Holding Ltd. (880) shares jumped 3.5% in Hong Kong, and by the end of the trading day Wednesday, shares had jumped 4.9% to a record close.
SJM is the last company among Macau's six major operators to receive approval to develop on the Cotai strip, and its development will sit among some of the world's most luxurious properties including MGM China's $2.6 billion Cotai resort which broke ground in February of this year and is expected to open by mid-2016.
The approval formally entitles SJM Holdings to develop the land but there will still be a somewhat lengthy process of approving the construction before breaking ground.