he news was broken by Business Daily, which was the first to report on the project, back in September. According to a PYE stock filing this week, there is already has an agreement to buy the land needed for the casino hotel from the developers of the One Oasis residential project.
The total estimated cost of the project is us$ 774 million, including the cost of the land. To help fund the project, there are plans to raise up to us$ 103.2 million through a stock placement. An additional us$ 309.6 million will be raised through issuing convertible bonds.
Stephen Hung, the vice chairman of Rio Entertainment Group, the holding company that operates Rio Hotel & Casino on the peninsula, has already indicated his intention to subscribe for us$ 25.8 million worth of placing shares and/or placing convertible bonds. Construction could start early next year in order for the property to be ready by 2016.
In the stock filing, it is not disclosed under which casino operator’s gaming licence the casino would operate.
The Cotai investment is part of a wider restructuring by PYE, which will see the company reducing its reliance on construction and property. The boutique casino hotel, to be built on a 6,000-square meter plot, is projected to have 66 live gaming tables.