International edition
September 25, 2021

According to Sterne Agee

MGM Cotai only likely to open in 2017

(Macau).- US-based brokerage firm Sterne Agee forecasts MGM China Holdings’ new Cotai property will only open in 2017. The gaming operator announced it has formally accepted a land concession contract to develop a five-star casino resort in Cotai, on a plot of almost 72,000 sqm.

The Macau government will arrange for the publication of the land concession contract in the official gazette in due course,” the company said.
Sterne Agee analyst David Bain wrote in a company report that the new property is only likely open in 2017, despite MGM China’s construction timeline of 36 months.

“We believe the timeline for official gazetting is somewhat opaque, and could take some time (months),” Bain wrote. “Further, we note that post formal gazetting, MGM China will need a construction permit. Wynn Macau’s Cotai project, formally gazetted around May 2012, has still not been issued a construction permit from the Macau government.”

Business Daily quoted MGM China’s CEO Grant Bowie as saying the company could begin construction on the Cotai site as early as this year, pending government authorisation.

In another investor’s note also issued this week, Bain commented on the mainland’s GDP growth rate for the third quarter, which stood at 7.4 percent year-on-year, in-line with consensus but slowing down from the 7.6 percent recorded in the previous quarter.
According to Bain, momentum is building up for a fourth quarter sequentially higher GDP growth rate, which “should be positive” for Macau gaming operators.

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