Galaxy secures loan for Cotai megaresort
Galaxy Entertainment Group has secured HK$8.8 billion (US$1.13 billion) from lenders to complete construction of its flagship Galaxy Macau megaresort on the Cotai Strip.
Galaxy got the secured six-year club loan from seven Asian banks at 4.5 percentage points above the Hong Kong Interbank Offer Rate, which the company claimed was the best rate available in the current market.
Galaxy slowed the pace of construction at the HK$14.1 billion, 550,000-square-meter resort in November 2008 as the global financial crisis and the resulting recession cast a shadow over the industry. But a strong recovery in Macau casino revenues has restored confidence in new resort construction on the peninsula, and last year, major operators SJM, Sands China and Wynn Macau were able to raise more than US$4 billion in IPOs on the Hong Kong stock exchange.
In the third quarter, Galaxy’s pre-tax earnings almost tripled to HK$278 million.
Galaxy Macau is scheduled to open in early 2011, with a soft opening possible the end of this year. It will feature up to 600 table games and 2,200 hotel rooms.