Analyst says work may be resuming on Macau Studio City project on Cotai Strip

Signs are pointing that construction work might soon resume on Melco Crown Entertainment’s Macau Studio City site on the Cotai Strip, said Union Gaming Group principal Grant Govertsen.
 
In a note to the firm’s clients, Govertsen, who is based in Macau, said Melco Crown has begun putting up on-site construction offices.
 
“The first of what appears to be two blocks of construction offices is in the interior fit-out stage, while the second is currently going vertical,” said Govertsen said.
 
He added the buildings would have required governmental approval.
 
“The on-site construction offices would seem to imply that the company feels it might be close to moving forward with the resumption of construction in the near-term and that perhaps an agreement has (or will soon be) reached with the government in terms of approving the site for gaming,” Govertsen said.
 
Melco Crown acquired 60 percent equity interest in Macau Studio City in June 2011. New Cotai Holdings, an entity controlled by Silver Point Capital and Oaktree Capital Management, has the remaining percentage.
 
Groundbreaking for Macau Studio City took place in early 2007, but the project soon stalled.
 
The project was to include several hotel brands, a casino, and a retail mall, nightlife and a film studio.