Las Vegas Sands Corp. plans to begin preliminary work in January to restart two stalled construction sites in Macau, a person close to the company said Tuesday.
Financing problems forced the company a year ago to halt construction on Cotai, a stretch of reclaimed land off the main peninsula of Macau, laying off 11,000 workers.
The two parcels of land sit across the road from Las Vegas Sands' massive Venetian Macao casino-resort, and would be linked to the Venetian Macao by glass-enclosed footbridges. At 13.3 million square feet of net developable area, the new project, which currently has its concrete shape and some ceiling-work finished, would be even larger than the Venetian Macao, which the company said was the largest building in Asia when it was opened in 2007.
On Monday, Las Vegas Sands disclosed in a filing that it had secured financing from banks for $1.45 billion. The company says it needs around $2 billion to finish the halted portions of the projects. It is seeking to secure $300 million more in financing, the company disclosed.
A person familiar with the matter said Las Vegas Sands plans to hire 12,000 to 13,000 construction workers over the next 12 to 18 months to restart work on the project, which will feature Shangri-La, Traders and Sheraton hotels. There will also be limited retail space and some convention and meeting space in the first phase that is set for the mid-2011 launch.
All other subsequent construction on the site will be demand-based, the person said.
The company is also seeking to raise as much as $3.83 billion from an initial public offering in Hong Kong for its Macau assets. It plans to use roughly $500 million from that offering to finance Macau construction, the person close to the company said. Much of the additional money raised through the IPO is expected to go toward paying down debt and paying off intercorporate loans.
Las Vegas Sands operates casinos in Las Vegas, Bethlehem, Penn., and Macau. The majority of its revenues come from its Macau operations.
Construction has continued on a $5 billion resort in Singapore, which it plans to open next year.
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