Marina Bay Sands to pay Singapore Tourism Board an additional US$1 billion
The billion-dollar payment comes on top of an initial upfront payment of US$963 million made back 2019
Marina Bay Sands (MBS) will make an additional upfront payment of US$1 billion to the Singapore Tourism Board (STB) with regard to design revisions made to its upcoming expansion project, dubbed MBS IR2.
The billion-dollar payment comes on top of an initial upfront payment of US$963 million made back 2019 when MBS initially announced its plans for expansion.
This payment was made to lease the associated parcels of land from the STB through 21 August 2066.
The new costing, coming in at two-and-a-half times more than the original investment made in 2019, amounts to US$4.7 million in design and construction costs, US$2 billion in land premiums, and US$1.3 billion in pre-opening and finance costs.
Significant changes
According to a filing from Las Vegas Sands, MBS’ parent company, dated 8th January, MBS and the STB entered into a Second Supplemental Agreement under which the company has committed to assume liability for the cost of the land premium associated with the purchase of additional gaming area to that previously agreed plus other land premiums resulting from changes to the expansion project’s design and floor area allocations.
The agreement still requires that such floor area be used only for the purposes of hotel, gaming, retail, food and beverage, meetings, incentives, conventions and exhibitions and an arena at the MBS expansion project site.
According to MBS officials, several changes were made to its development plans since expansion was first agreed to in 2019, requiring the allocation of gross floor area across the site by the STB, plus the purchase of 2,000 square meters of approved gaming area and 10,000 square meters of ancillary area in support of the gaming area from the STB to make the planned changes.
The Second Supplemental Agreement does, however, maintain previously agreed development dates with construction to commence on 8 July 2025 and finish by 8 July 2029, respectively.
A stunning development
Centred around the development of a fourth hotel tower alongside the existing Singapore icon, MBS IR2 will have its own gaming amenities, including a main casino area in the podium plus sky gaming in the new tower, as well as 570 luxury suites, a 15,000-seat arena, 110,000 square feet of MICE space, its own SkyPark, and a bevy of high-end food and beverage options.
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