MGM China shares rocket after new land secured | 19 October 2012
Shares in MGM China have rocketed after the company announced it had formally accepted a land concession contract for the building of a new casino, reuters.com reports.
The business, which is the Chinese arm of US-based gambling giant MGM Resorts, saw a five per cent increase in share value when it announced it had accepted the contract from the Macau government. The contract will allow MGM China to build a new property in the world’s largest gambling enclave, Macau.
Whereas Las Vegas is perceived to be the gambling capital of the world, Macau dwarfed it last year, bringing in revenue five times higher than its American counterpart.
MGM China should now be able to take a slice of this after securing the lease at an initial payment of 450 million patacas ($56.4 million). The total cost of the lease, meanwhile, is thought to be closer to 1.3 billion patacas. ($162 million). The deal is one of six that has been signed allowing large firms building rights in the newly-reclaimed Cotai, after permission was granted to build away from the peninsula, where all previous developments had taken place.
The business may soon be in the market for some facilities management software, amid plans reported by cnbc.com that the new offering would comprise 1,600 hotel rooms, 500 gambling tables and 2,500 slots.
Written by David Howells on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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