Wynn subsidiary gets nod to develop Cotai property
A subsidiary of Wynn Resorts Ltd. announced Sunday it had been approved by the Macau government to develop 51 acres on the Cotai Strip.
Wynn Macau Ltd., which is publicly traded on the Hong Kong Stock Exchange, said Monday it accepted the terms and conditions of a land concession contract from the Macau government to develop a resort containing a five-star hotel, gaming areas, retail, entertainment, food and beverage, spa and convention offerings.
Under the contract, a Wynn subsidiary will lease the Cotai land from the Macau government for an initial term of 25 years and have the right to renew the contract for additional periods.
In addition to a $193.43 million land premium payment, the subsidiary is required to pay Macau $771,738 a year in rent during the development phase and $1.08 million a year in rent once development is completed, the company said.
Wynn said the Macau government every five years could review the rent.
Macquarie Securities gaming analyst Gary Pinge, who is based in Hong Kong, said a labor shortage of Macau construction workers could hamper the project. Wynn was given 60 months by Macau authorities to complete the development.
"Understanding how this will be resolved will be critical to the opening date," Pinge said.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.