Melco Crown hikes budget for City of Dreams to P37 B

MANILA, Philippines - Macau-based casino giant Melco Crown Entertainment Ltd. is substantially jacking up its investment in the City of Dreams Manila integrated casino project to P37 billion.

The increased capital spending will be supported by a share sale of controlling shareholder MCE (Philippines) Investments Ltd., the company said in a disclosure.

Melco Crown (Philippines) Resorts Corp. said its board of directors approved the “increase of the total budget for the City of Dreams Manila project up to the time of opening from approximately P28 billion to approximately P37 billion.”

The board also allowed management to conduct a share placement placing and subscription transaction, Melco Philippines said.

Specifically, controlling shareholder MCE Philippines will sell existing common shares. The company will then issue to MCE Philippines the same number of common shares, which will be listed in the local bourse.

Melco Philippines implemented yesterday a one-day voluntary trading suspension due to the transaction. Shares of Melco Philippines closed at P12.18 apiece Tuesday.

Last month, Melco Crown partnered with DreamWorks Animation to put up Dream Play, an “edu-tainment” indoor theme park, in City of Dreams. The 2,000-3,000-square meter indoor theme park will become the family entertainment component in the integrated casino project.

Melco Crown is planning to start operations of its $1.3-billion City of Dreams Manila casino complex in the fourth quarter this year.

City of Dreams Manila will offer 365 gaming tables, 1,680 slot machines and 1,680 electronic table games. Previously, the casino planned to offer only 242 gaming tables and 1,450 electronic gaming machines.

The integrated casino project is Melco Crown’s first gaming foray outside Macau where it operates the City of Dreams and Altira Macau casinos. City of Dreams Macau is famous for its world-class gaming and entertainment offerings including the House of Dancing Water Show and party place Club Cubic.

Belle Corp., the gaming arm and upscale leisure developer of mall and banking conglomerate SM Group is the builder of the casino and hotel complex in the Manila Bay reclamation area.

It will be the second casino complex to open at the Philippine Amusement and Gaming Corp.’s 120-hectare Entertainment City, which is groomed to become the Philippines’ version of the Las Vegas strip. In March last year, port mogul Enrique Razon opened the $1.2-billion Solaire Resort and Casino.