Las Vegas Sands expects us$ 1 billion gains from Palazzo Condos

Gross proceeds from the sale of 300 condo units are expected to range from us$ 1.45 billion to us$ 1.94 billion, while the condo tower is expected to cost about us$ 465 million to build, Las Vegas Sands Corp. said in a document filed Tuesday with the Securities and Exchange Commission.

The proceeds are "higher than what we previously expected," Morgan Stanley analyst Celeste Brown said in a research note. She said the proceeds would add about us$ 2 per share in value to the company. Las Vegas Sands shares fell 51 cents to close at us$ 87.87 on the New York Stock Exchange.

The company also said The Palazzo - which includes the condo tower, a casino-hotel and mall -- would cost us$ 2.56 billion to build, while its Sands Bethworks casino development in Bethlehem, would cost us$ 637 million. Both price tags exceeded Brown’s estimates, she said. The Palazzo is expected to open later this year, while the first phase of Sands Bethworks is to open in mid-2008.

The company said it was also spending us$ 287 million to expand the Sands Expo convention center, us$ 114 million to refurbish the Venetian tower and us$ 40 million on the 14th floor of the Venezia tower at The Venetian, all in Las Vegas.

Las Vegas Sands made the filing in relation to its marketing of a us$ 5 billion credit facility to refinance its debt, pay for development projects and provide working capital.