Casino operator Las Vegas Sands Corp (LVS) is to pay US$1 billion to the Singaporean authorities in return for changes to the expansion project for its existing Marina Bay Sands (MBS) casino complex in the city-state.
The announcement follows an agreement between the property’s operator – Las Vegas Sands’ subsidiary Marina Bay Sands Pte Ltd – and the Singapore Tourism Board. The deal allows for the firm to increase the overall gaming area allocation for the expansion project, among other amendments.
In return, “the additional upfront payment amount under the second supplemental agreement is currently anticipated to be approximately US$1 billion,” stated U.S.-listed Las Vegas Sands in a filling on Friday.
The group had already made an upfront premium payment of US$963 million in 2019 to lease the parcels of land underlying the expansion project site through August 2066.
Las Vegas Sands had said in October last year it planned to spend US$8.0 billion to develop the second phase of the Marina Bay Sands complex.
That investment already comprised US$2.0 billion in total land premiums, and an estimated US$4.7 billion in design, construction and other related costs. Pre-opening and financing costs are at the time estimated at US$1.3 billion.
The new phase – dubbed “MBS IR2″, standing for ‘integrated resort’ – will include a fourth tower (pictured left in a rendering) with over 570 rooms, additional casino space, a 15,000-seat arena, a sky roof, retail, restaurants, and space for meetings and exhibitions.
According to the latest agreement between Las Vegas Sands and the Singapore Tourism Board, the development investment in the expansion project “shall be of a total sum of not less” than SGD3.06 billion (US$2.23 billion). That includes SGD220.0 million for facilities for meetings and exhibitions, SGD196.0 million for a “rooftop attraction”, and a SGD880.0 million for the arena.
The latest supplemental agreement – following a first supplemental agreement signed between the Las Vegas Sands group and the Singapore Tourism Board in March 2023 – also reaffirms the firm would commence construction of the expansion project by July 8 this year, with completion to take place by July 8, 2029. The revised dates had been announced in April last year.
The MBS IR2 project has faced a number of delays and changes, with the start of construction postponed by several years.
Las Vegas Sands explained in its Friday filling that, since entering into the original development agreement with the Singapore Tourism Board in 2019, the firm had made “certain changes” to the Marina Bay Sands expansion project.
That, the company added, required “an allocation of gross floor area” across the project by the Singapore Tourism Board, and “the purchase of 2,000 square metres [21,528 sq. feet] of approved gaming area and 10,000 square metres of ancillary area in support of the gaming area from the Singapore Tourism Board”.
These were confirmed in the latest supplemental agreement, which was signed by the parties on January 8.
In the deal, Las Vegas Sands “committed to assume liability for the cost of the land premium associated with the additional gaming area purchase as well as other adjustments to the land premiums resulting from the consequential changes to the allocations of gross floor area for the Marina Bay Sands expansion project since the first payment made in 2019.”
