A recent uptick in construction activity in Macau could be related to the upcoming re-tendering process and the possibility of a seventh casino license being issued, according to Union Gaming analyst Grant Govertsen.
In a Monday note taking a closer look at Macau’s construction pipeline, Govertsen highlighted a number of projects currently being undertaken across the Asian gaming hub, stating the projects “are likely to be used as leverage as it relates to the issuance of a seventh or even eighth gaming license at some point in the future.
“Some of these projects are related to existing service provider casinos (or now mothballed casinos), or by companies with no existing presence in Macau,” he added.
The projects include waterfront land nearby Wynn Macau that is “rumored to be owned/controlled by a large SE Asian gaming operator”, the apparent expansion of the Pousada Marina Infante near Broadway – which formerly housed an SJM casino and could have its license reactivated – and the development of a 2-star hotel by Golden Dragon Group near Grand Lisboa on the Peninsula.
SJM has also made significant progress on land alongside its under-construction Grand Lisboa Palace which the company has previously stated would be used for some sort of theme park.
“This project, which has previously been reported to include multiple hotel and retail components in its first phase (this is likely the construction progress now visible) and perhaps a theme park in a subsequent phase, could open around the same time as Grand Lisboa Palace,” Govertsen said.
SJM Vice-Chairman, Executive Director and CEO Ambrose So confirmed last week that Grand Lisboa Palace would open in either late 2019 or early 2020 and in stages following a series of delays over the past 12 months.
Govertsen observed that another likely reason for the recent surge in construction activity is the government’s use-it-or-lose-it policy whereby the government can take back land from projects that have shown no signs of progressing.
