MGM, SJM question Galaxy’s land grant

The Cotai Strip land grant to Galaxy Casino triggered MGM Grand and Sociedade de Jogos de Macau’s (SJM) concern that the government was giving privileges to a particular gaming operator.
The Official Gazette promulgated a dispatch Wednesday that officially granted the 440,248 square metres land parcel, composed of four land sections, on the Cotai Strip to Galaxy Casino for its mega resort development project.
However, the SAR government at the same time allows the gaming operator to transfer the tenancy of each land section to a third party before it is being used.
Managing director of MGM Grand Paradise, Pansy Ho Chiu King, said she was trying to understand whether the Macau government was giving privileges to an individual gaming operator which created an “unfair phenomenon in the projections for return on investment”, according to Radio Macau.
Ms Ho said that it was important to find out the government’s intention on the approval of tenancy transferral and she hoped to discuss with related officials regarding this matter.
She also criticised the SAR government for not consulting with or notifying the gaming industry in prior.
On the other hand, director of SJM Ambrose So also said that he would like to meet with the government to discuss according to which regulation Galaxy could transfer land tenancy to a third party, Radio Macau reported.
Mr So pointed out that the gaming concession contracts require the SAR government to “equally treat” each operator.
“If one operator has this kind of treatment, the other operators should be able to enjoy the same thing,” the SJM director said.
The land parcel, situated on the east of Avenida Marginal Flor de Lótus and the south of Estrada da Baía de Nossa Senhora da Esperança, is the largest land parcel granted for private development by the SAR government since it was established.
The total area is even bigger than the Venetian’s “Cotai Strip” project.
According to the dispatch, the land premium is around 2.924 billion patacas and Galaxy is also responsible for reclamation and other infrastructure projects on and around the site.
The land parcel is formed by section one (223,560 square metres), section two (61,049), section three (48,000) and section four (107,638) which will be used to build an integrated resort including casinos, hotels, apartment hotels and exhibition and convention centres.
Before Galaxy Casino, the Macau government also allowed the Venetian Macau to transfer the land tenancy of its “Cotai Strip” project to third parties.