Marina Bay Sands granted one more year to start building its S$4.5b extension

SINGAPORE'S Marina Bay Sands (MBS) now has one more year to kickstart its S$4.5 billion expansion plan, with this reprieve being granted by the Singapore Tourism Board (STB).

According to a filing with the US Securities and Exchange Commission dated Mar 30, the integrated resort operator has until Apr 8, 2023 to "commence construction" on the plans defined in a development agreement it signed with the STB in April 2019.

Las Vegas Sands, which owns MBS, said in an earnings call in January this year that the property expansion will be completed in 2026, a year after its original deadline. Las Vegas Sands chief executive and chairman Rob Goldstein had reiterated his company's confidence in Singapore, citing demand for travel as an indication of recovery.

MBS announced its S$4.5 billion expansion in April 2019, a plan entailing the development of a new 1,000-room hotel tower and a live entertainment arena with a seating capacity of at least 15,000, among other facilities.

This was part of an agreement with the government, under which MBS and Resorts World Sentosa (RWS) pledged to plough a combined S$9 billion into new non-gaming attractions. In return, the government would provide them with "business certainty" by ensuring that no casinos will be built here until end-2030.

The Business Times reported last September that MBS had extended the deadline for it to deliver to its lenders certain details of the expansion of its property. An amendment letter dated Sep 7, 2021 addresses an S$8.67 billion facility agreement, under which MBS is seeking to waive its requirements to comply with financial covenant provisions for another year, to Dec 31 this year.

Minister of State for Trade and Industry Alvin Tan said in Parliament in January that both MBS and RWS had indicated that there will be "potential delays" in the completion of their expansion plays. At that time, Tan said the full extent of the delays was unclear.

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