Casino operator Galaxy Entertainment Group (GEG) has signed a $1.6bn deal with China Construction, a subsidiary of China State Construction Engineering Corp to build Phase 4 of its Galaxy Macau gaming resort on the island of Cotai.
Cotai is a 5.3-sq-km artificial island dredged to provide Macau with more room for hotels and casinos.
The first two phases of Galaxy Macau had five themed hotels. Phase 3, now under construction, will add 1,500 hotel rooms, some casino space, the 16,000 seat "Galaxy Arena" and 37,000 sq m of conference and exhibition space.
Phase 4 will add 2,000 hotel rooms but little gaming area.
Under the legally-binding letter of intent signed with China Construction, work is expected to take 1,053 days – just under three years – to complete, GEG said (pdf) in a notice to the Hong Kong stock exchange yesterday.Â
When phases three and four are complete, the resort will double in size to 2 million sq m, making it one of the world’s largest leisure and conference destinations.
Galaxy Entertainment’s current Macau gaming rights expire in June 2022, in common with those of the city’s other five casino operators.
A public retender process is due to be held in association with the expiries, although the Macau government also has the ability to extend the current licences for up to five years.
GEG is one of the three original concessionaires in Macau, and is listed on the Hong Kong stock exchange. Most of its holdings are in Macau, although it also has a presence in Monaco.
Image: Galaxy’s existing Cotai casino resort opened in 2011 (Abasaa/Public Domain)
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