Marina Bay Sands to be 15% bigger

Marina Bay Sands, which is targeted to open around the end of the year, will be 15 per cent bigger in terms of gross floor area (GFA).

The four level casino area will, however, only occupy about 3 per cent of the total GFA.

The GFA for the integrated resort was initially expected to be 570,000 sq m (6.14 million sq ft). A 15 per cent increase could take it up to 655,500 sq m (7.06 million sq ft).

MBS general manager and vice-president George Tanasijevich said that since the design of MBS was first revealed, the design of the integrated resort (IR) had undergone ‘refinement and redesign’ to become both ‘bigger and better’.

This increase in size also partially accounts for the current budget for the IR which stands at US$5.4 billion, up from previous estimates of US$3.6 billion and US$4.5 billion.

About 2 per cent of additional GFA can be attributed to the $50 million that will be spent on art at MBS. This is through an Urban Redevelopment Authority art incentive scheme which allows property developers of new projects to gain additional GFA, over and above the maximum allowed, if they integrate art permanently in the design of new commercial or residential buildings in the Central Area.

Mr Tanasijevich was speaking at a media briefing yesterday at the construction site of MBS where it was revealed that the IR will now also be 5-storeys higher.

Structural works are almost 75 per cent completed with the structure for the casino building already ‘topped up’ and the topping up for the three 55-storey hotel towers expected by July.

The hotel towers, which are currently at about the 28-storey level are simultaneously being fitted out.

All this with the aim of opening in time.

While Mr Tanasijevich said they hope to open by the end of 2009, ‘or close to it’, it is not clear yet which parts of the IR will open first.

He said what will likely open first will be the ‘primary contributors of revenue’. He added that MBS was currently in discussions with the authorities on the phasing of the ‘progressive opening’ of the IR.

Separately, Las Vegas Sands (LVS) chairman and CEO Sheldon Adelson, who was speaking in the US, said that estimates made by analysts for earnings by MBS were ’somewhat low’.

According to a Reuters report, analysts had estimated that MBS could generate Ebitda of between US$500 million and US$900 million.

But citing Singapore’s favourable tax regime, Mr Adelson said: ‘We will save 25 per cent on average on taxes.’

Mr Adelson’s comments come after LVS reported a loss of US$136.5 million in the fourth quarter of 2008, down from a profit of $39.9 million a year ago.

At the time of the filing on Feb 25, LVS also said that it had raised its annual cost savings target to US$250 million.

In addition to this, Mr Adelson said yesterday that it would try and ’squeeze out another US$200 million to US$250 million’. ‘If we do that, we are home free,’ he added.

According to its Q4′08 filings, LVS has unrestricted cash balances as of December 31 of US$3.04 billion while restricted cash balances were US$194.8 million.

Of the restricted cash balances, it said US$124.1 million is restricted for Macau-related construction and US$61.9 million is restricted for construction of MBS.

Total debt outstanding, including the current portion, was US$10.47 billion. Principal payments required to be repaid in 2009 and 2010 total US$114.6 million and US$197.6 million, respectively.

Source : Business Times – 5 Mar 2009

Resort at three-quarter mark

First batch of hotel rooms will be ready by August

COME year-end, Marina Bay Sands will usher visitors in to at least half of the property’s gross floor area.

That was the assurance given for Singapore’s first integrated resort, although Marina Bay Sands executives yesterday stopped short of revealing an opening date.

The project is already three-quarters completed, they said, during a press tour for some 40 journalists.

“Everyone at Marina Bay Sands is working aggressively towards our target opening date. This is our total focus and we are confident of delivering on all fronts,” said Marina Bay Sands president Nigel Roberts in a statement.

The crowning glory of Marina Bay Sands is the roof garden atop the three hotel towers – which have now hit the halfway mark of between 26 and 28 floors.

From end-August, 4,000 tonnes of steel beams will be hauled 200m skywards to build the 340m-long, 38m-wide sky park. When completed, the park will have three linked 50m swimming pools to provide a 146m-long infinity edge overlooking the city.

Building the park‚s 66m cantilever – the longest in the world – will be an engineering feat, said senior vice-president of construction (Asia) Matthew Pryor. He said it takes 18 hours to lift each steel beam.

The hotel towers, which feature a vertical west wall and an arched east wall each, will now enter a comparatively simpler construction phase. Progress will be more “rapid”, Mr Pryor said.

Between now and July, the hotel towers will rise by at least five storeys each month to reach its eventual 55 floors.

VIEW FROM HALF WAY UP

From the 21st floor of Marina Bay Sands‚ hotel tower 1, company officials gave a show-and-tell update of the progress of each structure on its grounds – including the four-storey casino building, the 120,000 sq m Expo and Convention Centre, the ArtScience Museum, and two theatres.

Four of the five storeys at the convention centre are complete, and work is underway on the top floor, which will house a grand ballroom. Much of the casino structure is also done.

Journalists also got a peek of the views some of the 2,600 hotel rooms will have – the CBD skyline and the Marina Barrage.

Interior fitting-out of some hotel rooms have begun, said Mr Pryor. The first batch will be ready by August.

About 90 per cent of the construction costs have been locked in, said Marina Bay Sands general manager George Tanasijevich. The eventual cost of the entire project will be US$5.4 billion ($8.4 billion).

Parent company Las Vegas Sands lost94 per cent of its market value last year amid a plunge in gaming revenues in Las Vegas and Macau. The company suspended all development works in Macau and its St Regis condominium on the Las Vegas strip to focus on its resort in Singapore and Bethlehem.

OTHER NUGGETS
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- Construction of Marina Bay Sands goes on round-the-clock, with 7,500 workers on-site at any time.

- The length of the sky park is approximately the height of the Eiffel Tower, and the cantilever alone can fit an A380 aircraft.

- The three swimming pools, which contain about 1.6 million litres of water altogether, are the world‚s largest outdoor pools.

- Marina Bay Sands is spending over $50 million on artwork to be displayed on its property.

- 40 per cent of the Marina Bay Sands project is underground.

Source : Today – 5 Mar 2009

Marina IR on track to open late 2009: Sands

Singapore’s first integrated resort (IR) is on track to open by the end of the year despite the global financial and tourism slump, project developer Las Vegas Sands said on Wednesday.

At least half of the Marina Bay Sands complex, which is located in Singapore’s financial district, will be operating commercially at the end of 2009, company officials said at a media briefing.

‘I can assure you that what we open in the initial phase of it will be a fully fledged integrated resort that is compelling from a tourism standpoint and something that Singapore can be proud of,’ the resort’s general manager George Tanasijevich said.

‘We are going to be looking to really accelerate the tourism figures and the visitation numbers that you see coming into Singapore already,’ he said.

Company executives said they were confident the resort’s opening would not be affected by the economic downturn.

The resort is one of two integrated projects under development in Singapore. A second one is being built on nearby Sentosa island, which has beach, golf and yachting facilities.

Singapore in 2005 gave the approval for the IRs to be developed in a bid to draw more visitors to the city-state, whose main attractions are shopping, dining, night life and animal parks.

The Marina Bay Sands, with an investment cost of over US$5 billion, was Singapore’s first IR project to be awarded, in 2006. Apart from gaming, the complex will also include hotel, convention, luxury retail and performing arts facilities.

Source : Business Times – 4 Mar 2009

Sentosa, Marina IRs get pricier

Both are revising costs upwards for 2nd time

SINGAPORE’S two integrated resorts (IRs) are getting increasingly expensive, with both developers revising their cost estimates upwards for a second time.

Construction in progress at Marina Bay Sands, certain section of which are expected to open by year’s end. It was announced last week that the IR project is now estimated to cost US$5.4 billion, up from previous estimates of US$3.6 billion and US$4.5 billion. — ST PHOTO: ALPHONSUS CHERN

An additional $590 million will need to be pumped into the kitty for the Sentosa project, while the price tag for the Marina Bay Sands development has gone up by US$900 million.

Resorts World at Sentosa yesterday revised the cost for the 49ha resort in its earnings call, bringing it up to $6.59 billion. This is the second time the budget has been revised: It was bumped up from $5.2 billion to $6 billion in November 2007.

Marina Bay Sands will cost more as well. At last week’s earnings call, Las Vegas Sands Corp announced its Singapore IR is estimated to cost US$5.4 billion, an upward revision from previous estimates of US$3.6 billion and US$4.5 billion.

No explanations were given by Sands for the increase in cost, but it raised US$2.1 billion last November in a rights issue to cover its projects, including the one in Singapore.

Resorts World at Sentosa chief executive officer Tan Hee Teck said yesterday that additional funding would come from operating cash flows when the casino resort opens next year.

The extra money was needed for improvements to the design of the casino project, he said. Areas which were tweaked included pedestrian flow, the monorail stop at the resort and adjustments to the 24 attractions.

He said: ‘We want to make sure each and every attraction is up to standard. We found we needed more money to bring the attractions up to a superlative level.’ Moreover, construction costs had risen sharply in the last few years, he added. Steel, for example, rose from $800 per tonne in 2007 to $1,800 last year.

CIMB-GK Song Seng Wun said it was simply bad timing that the IR projects were awarded at the peak of the construction boom, which led to costs spiralling upwards.

Construction projects awarded earlier do not benefit from prices softening since the global financial meltdown, as they had locked in materials at a higher rate, Resorts World’s Mr Tan said.

Despite the revision in budget and the ongoing global recession, Mr Justin Tan, managing director of parent company Genting International, said he is ’still as confident’ in the success of the project.

As travellers trim their budget to take in short-haul travel, visitors from China and India who may have splurged on trips to Las Vegas or Europe would head to Singapore instead, he added.

Resorts World at Sentosa is slated to open on schedule by March next year.

One section of the resort is due for completion next week when its first 11-storey hotel, the Maxims Tower, is topped off. It will be the first development to be completed at either of the IRs.

Marina Bay Sands is expected to open in the fourth quarter of this year. However, it is uncertain which parts of the resort will be ready as Las Vegas Corp said only ‘certain features’ are targeted to be ready by December.

The resort has applied to the Government for a staggered opening, but has yet to receive official approval.

Source : Straits Times – 20 Feb 2009

Four MRT lines in Marina Bay by 2018

BY 2018, the Marina Bay area will be served by four MRT lines – the North-South Line, Circle Line, Downtown Line and the Thomson Line.

Commuters will be able to reach an MRT station within a walking distance of no more than 400m on average.

Transport Minister Raymond Lim revealed this in response to MP and deputy chair of Government Parliamentary Committee for Transport Ong Kian Min’s question on what was being done to make transport seamless in the Marina Bay area which will house the integrated resort.

Mr Lim said that the ministry was also working on making access to MRT stations in the new downtown seamless, with walkways underground, at street level and above ground.

Some could also be malls, like the link between Suntec City and City Hall MRT station.

Source : Straits Times – 13 Feb 2009

Integrated resort on course for year-end opening

MARINA Bay Sands, Singapore’s first integrated resort, is on target to open at the end of the year, its president, Mr Nigel Roberts, said yesterday.

His comments come after recent reports which raised the possibility that the resort would not be completed on time as a result of the global downturn.

Mr Roberts said the resort is seeing ‘tremendous’ demand for its facilities.

The 77th UFI congress in 2010 is so far the only confirmed event announced to the media.

But there are more on the way. The integrated resort has received around 78 ‘expressions of interest’ for meetings, incentives and conventions up to 2014.

It has also received more than 60 enquiries about its exhibition facilities for shows up to 2011, spanning industries such as maritime and semi-conductors, luxury consumer goods and textiles.

When asked about the take-up of retail space, resort vice-president George Tanasijevich said it was continuing to target high-end tenants.

He declined to elaborate further.

Source : Straits Times – 12 Feb 2009

No let-up in remaking S’pore into top location

NATIONAL Development Minister Mah Bow Tan said there will be no let-up in public building works even as the economic climate here worsens.

The Government will invest in public housing, new parks and plans, sustainable development and even accelerate the Lift Upgrading Programme for Housing Board flats, he said.

‘Nothwithstanding the current economic recession, we are taking the opportunity to remake our city,’ said Mr Mah during the Budget debate on estimates for his ministry yesterday.

‘In five to 10 years’ time we will see a new Singapore. We will have a new city as plans to transform and rejuvenate our downtown and our heartland take shape.’

‘We are striving to be a global city of distinction – a top destination for global businesses to base their operations, a choice location for global talent to work in, but above all, a city that all Singaporeans can be proud to call home.’

He was responding to questions from MPs.

One of them, Mr Liang Eng Hwa (Holland-Bukit Timah GRC), asked if development plans for Jurong Lake District and Paya Lebar commercial district would be put on hold because of the economic downturn. He also asked if there were plans to help rescue the severe slump in the property market.

The market has corrected with the current economic downturn, said Mr Mah.

‘The Government cannot artificially prop up prices, in the same way that we cannot suppress prices in a bull market.’

It has already acted swiftly to help, he said. For instance, the Government has introduced new measures in the Budget to help ease the cashflow of developers.

Mr Mah said his ministry will continue to monitor the property market closely and implement more measures if necessary to lend stability to the market.

‘While we tackle the current challenges, we must not forget that our economic fundamentals remain strong, and we should continue to position Singapore so as to seize new opportunities when the upturn comes.’

Yesterday, Mr Charles Chong (Pasir Ris-Punggol) also asked if there would be a slowdown in the Lift Upgrading Programme because of the downturn.

Senior Minister of State (National Development) Grace Fu responded: ‘On the contrary we intend to step it up.’

Yesterday, Mr Mah also highlighted the development plans in growth areas and its sustainable development thrust. Among them:

Punggol 21-plus: This, said Mr Mah, is not just a rehash of the Punggol 21 plan. ‘There are some very new aspects of the Punggol 21-plus plan which was never envisaged in the original Punggol 21.’

The construction of the first 2.4km of the Punggol Waterway costing $145 million is one of them. The contract has just been awarded and the waterway is slated for completion by the end of next year.

The first sale site for a mixed commercial and residential development at the town centre will be launched by 2011. When the two developments are completed, Punggol will enjoy a ‘first class’ waterfront environment, said Mr Mah.

Marina Bay: This precinct will take shape as a new premier business location by the end of the year.

The Government has invested close to $5.7 billion in the infrastructure there and will continue to pump in another $1 billion of infrastructural works for the next 10 to 15 years.

Many key developments such as Gardens by the Bay, Marina Bay Financial Centre and the integrated resort are being built now. When completed in two to three years’ time, Marina Bay will become the new downtown.

New hubs in Jurong East, Paya Lebar and Kallang: The Government is pressing on with the infrastructure development for these hubs and will invest a total of $2.9 billion on essential works in the three growth areas.

Lift Upgrading Programme (LUP): The programme is on track, with the Government having selected 80 per cent of eligible blocks for lift upgrading.

In the 2008 fiscal year, the Government selected 60 precincts for LUP, 10 more than the originally intended 50. These will be announced soon.

It plans to select more for the 2009 fiscal year and to bring forward this selection by about six months.

Over the next few years, HDB will select the remaining 1,000 eligible blocks so that these can be completed by 2014.

There are still about 1,500 blocks to be selected under the LUP. ‘This is a large number and we have to prioritise, but we are on track,’ said Ms Fu.

HDB heartland: The Government has spent $2.4 billion over the last five years on the various upgrading programmes and will almost double it with another $4.6 billion over the next five years.

Sustainable development: Recommendations from the Inter-ministerial Committee on Sustainable Development – set up last year to chart strategies – will be released next month. A sum of $1 billion will be spent over five years to implement the recommendations.

Dr Muhammad Faishal Ibrahim (Marine Parade GRC) had asked about the work of the committee. Mr Mah said the committee’s recommendations would centre on four key areas:

~ Measures to improve Singapore’s resource efficiency. ‘In particular, we will put in special efforts to promote energy-efficient buildings,’ said Mr Mah.
~ Measures to enhance the liveability of Singapore. ‘More efforts will be made to promote clean transport and enhance connectivity for cyclists and pedestrians.’
~ New resources to build up Singapore as a hub for sustainable development technologies and solutions.
~ New partnerships with people and private sectors to promote lifestyle changes to support a higher level of sustainability.

Source : Straits Times – 7 Feb 2009

$8.5b to be spent to help remake S’pore

THE government will spend $8.5 billion to revamp Singapore’s HDB estates and develop the commercial nodes of Marina Bay, Jurong East, Paya Lebar and Kallang.

Some $2.9 billion will be spent on essential infrastructure to pave the way for future development at Jurong East, Paya Lebar and Kallang – three regional hubs earmarked for development in the Urban Redevelopment Authority’s 2008 Master Plan.

The government will pump in another $1 billion for infrastructure works at Marina Bay over the next 10-15 years.

As for HDB estates, National Development Minister Mah Bow Tan told Parliament: ‘We have spent $2.4 billion over the past five years on various upgrading programmes and we will almost double it, with another $4.6 billion over the next five years.’

Various government agencies will participate in the development of the three regional hubs.

At Jurong, the Land Transport Authority will upgrade Jurong East MRT station and redevelop the bus interchange, while JTC will expand the International Business Park and the Public Utilities Board will transform Jurong Lake for more leisure activities. The Health Ministry will build Jurong General Hospital.

At Kallang Riverside, new infrastructure will open up the area for future waterfront developments.

And at Paya Lebar Central, the Circle Line MRT and Paya Lebar MRT interchange will be operational in 2010, and the new Geylang Serai Market will be completed this year.

But the bigger price tag will be for remaking HDB estates. Rejuvenation works for the pilot town, Yishun, have started. Older estates will be rejuvenated through the injection of new flats and residents.

Mr Mah said: ‘Notwithstanding the current recession, we are taking the opportunity to remake our city. In 5-10 years, we will see a new Singapore. We will have a new city, as plans to transform and rejuvenate our downtown and our heartlands take shape.’

Senior Minister of State for National Development Grace Fu said that the government would remain focused on its long-term goal of upgrading the construction sector.

Responding to questions about measures to help the industry during the downturn, she reiterated that the government’s previous announcement that it would award an additional $1.3 billion of small and medium-size public sector contracts – each valued at $50 million or less – this year. Added to small and medium-size projects already planned, this will lift total public sector demand for such projects to $4.8 billion.

‘This is a sizeable 67 per cent increase over the average annual value of small and medium-size government projects awarded in the past five years,’ Ms Fu said.

Works to be brought forward include smaller-scale projects valued at up to $15 million, such as upgrading community clubs, roads, parks and park connectors. Projects of up to $50 million include building new rental flats and indoor sports halls in schools, upgrading hospitals and improving public housing lifts.

The government is also reducing the security deposits for public construction projects from the usual 5 per cent. In general, the deposit will be 1.25 per cent for projects of up to $15 million and 2.5 per cent for projects of higher value.

Mr Mah and Ms Fu said that the government would monitor the property market and the construction industry to see if further action is needed.

Source : Business Times – 7 Feb 2009

Marina Bay to have dedicated police centre

The Singapore Police Force is setting up a dedicated security centre at Marina Bay to manage the challenges expected once the integrated resort there has been completed.

The new Marina Bay Neighbourhood Police Centre (NPC) is expected to have 180 officers, three times the number of staff for each existing centre.

The other 32 existing neighbourhood police centres have an average of about 70 officers each.

Unlike existing police centres that handle mostly residential cases, the one at Marina Bay will carry out operations specific to the needs of Marina Bay.

A quarter of a million people ushered in the new year at Marina Bay last month.

The Singapore Police Force says large-scale activities like the New Year countdown party are expected to be common once the Marina Bay Sands integrated resort is up and ready.

To maintain order, a special security unit will be set up at the new Marina Bay NPC.

Singapore Police Force’s Deputy Assistant Commissioner, Lau Peet Meng, said: “We’ll make sure the event is protected. The officers will be in charge of security patrols. So, they will walk around the vicinity, looking out for suspicious persons or objects and to always be the alert, to sound the alarm if they do see something out of the ordinary.

“We’re looking at possibly using other modes of transport like three-wheelers or bicycles to see how we can actually respond to cases and incidents more quickly.”

Also unique to the Marina Bay NPC is a Plainclothes Taskforce that will look into integrated resort-related vice activities.

Deputy Assistant Commissioner Lau said: “From the experience of overseas casinos, we can see that usually there will be some vice issues. We will form a Plainclothes Taskforce that will reside in this NPC.

“The role of this taskforce is, first of all, to be aware of the situation. So, they (taskforce) will be going around the IR and its vicinity, observing the kind of people that are around the area.

“The second role is to enforce the laws that we have in this country. If we do find vice or any other activities that are illegal, this taskforce will then move in to enforce the laws.”

The Marina Bay NPC will also work closely with building owners and security managers in the area, something the police force decided to do after studying London’s model.

Deputy Assistant Commissioner Lau said: “The more important lesson that we learnt from London is engaging the business owners and business partners in the area. We want to help them think about how to respond to incidents when they take place and how quickly they can recover from those incidents… business continuity plans. These are important issues that we want to encourage our business partners to think about in the downtown area.”

Businesses like Marina Mandarin say it is good planning to have a police centre in the area as that will mean faster response time from officers for activities at the bay as opposed to the current police centre which is located relatively further away – at the Police Cantonment Complex near Chinatown.

The new Marina Bay NPC will also oversee the Singapore River and the Bugis shopping district.

The NPC will be located next to a fire station, the second such centre to do so after Queenstown NPC. But its exact location and other details are still being worked out.

Meanwhile its operations will start at the Police Cantonment Complex in the second half of 2009.

It hopes to move to the Marina Bay area by the end of this year or early 2010.

Source : Channel NewsAsia – 15 Jan 2009

Sands puts eggs in S’pore basket, will open on time

LVS says it has sufficient cash and will scrimp and save on costs elsewhere

Las Vegas Sands (LVS) needs US$4 billion to complete the Marina Bay Sands (MBS) and says reassuringly that it currently has US$6.2 billion in borrowings and liquidity.

Speaking at an investor conference in the US, LVS president and COO William Weidner said that its ‘revised business plan’, which includes the monetisation of non-core assets, has put the company in a cash position (borrowings and liquidity) of US$6.2 billion.

‘The total need that we have is about US$4 billion to get us to the opening of Singapore (Marina Bay Sands). So there is cash available to open Singapore (Marina Bay Sands) in the first quarter of 2010,’ Mr Weidner said.

While LVS has ‘moth-balled’ development of sites five and six at the Cotai Strip in Macau, it is also developing other projects concurrently in the US, notably the Sands Bethlehem.

However, part of LVS’ revised business plan includes massive cost cutting at its Las Vegas operations. ‘If we take a look at our plan and the risk to that plan, the risk is the underperformance in Las Vegas. We are mitigating that by a tremendous amount of cost cutting,’ Mr Weidner said.

He revealed that LVS expects to cut US$100 million in cost in 2009 by cutting expenses, labour, head count and benefits. ‘Everywhere that doesn’t effect the customer experience, we are cutting, cutting, cutting,’ he said.

Indeed, LVS will be focusing on opening MBS on time. ‘Our focus is on the current operating environment and stickhandling through 2009 to the opening of Singapore (MBS),’ he said.

And for good reason too.

By cornering a good chunk of the 4- and 5-star hotel market around Marina Bay, Mr Weidner projected that with its 2,600 rooms, and an average daily rate of US$269 per room by 2011, LVS hopes to rake in an ebitda (earnings before interest, taxes, depreciation and amortisation) of US$161 million. He also forecasted a rental revenue from its retail component at US$179 million.

More important is that assuming a gross revenue of US$2 billion for MBS, which is about the same as its Macau operations currently, Mr Weidner said that earnings generated from the US$2 billion revenue in Singapore would amount to US$940 million because of the favourable tax regime compared to only US$504 million in Macau.

Mr Weidner’s bullish comments come after a particularly tough quarter fraught with speculation that LVS could file for bankruptcy. In November, it had made a regulatory filing that said it was unlikely to meet the maximum leverage ratio covenant, triggering defaults on loans needed to complete projects.

Since then, LVS has announced that it has raised US$2.1 billion of capital.

Addressing the issue of debt, Mr Weidner said: ‘The debt that we have is extraordinarily valuable. No one can generate about US$9.8 billion of debt at a blended rate of about 5 per cent in this environment.’

He said that the first maturity of this debt is in May 2011 of about US$800 million followed by May 2012 of about US$776 million.

Confirming the opening of Marina Bay Sands, a spokesman for MBS said it is still targeted to open by the end of 2009.

Source : Business Times – 9 Jan 2009