LEIGHTON Holdings has won its biggest Asian development, a $US1.3 billion ($1.75 billion) contract to build the City of Dreams casino and hotel complex in Macau for the James Packer-backed Melco group.
The project in the Las Vegas of Asia will have four deluxe hotel towers, ranging from 4.5-star to luxurious six-star accommodation, serviced apartments; an "underwater-themed" casino with 450 gaming tables and 3000 poker machines; a luxury retail arcade; and a world-class performance hall.
News that Leighton (lei.ASX:Quote,News) would be undertaking the construction would provide a measure of confidence for investors in Mr Packer's Publishing and Broadcasting Ltd (pbl.ASX:Quote,News) as it would ensure that the major project is completed to Western-style building standards at a time when the company has substantially increased its exposure to the Macau casino business.
Melco said last night that work on the City of Dreams would begin immediately and should be finished in the second half of 2008. Construction work on the massive project would be handled by Leighton Asia and its subsidiary John Holland in conjunction with the company's long-time Asian partner, China State Construction Engineering.
Pre-foundation work on the City of Dreams, aimed at mid-market gamblers mainly from mainland China, has been under way for some months.
But more substantial work on the job has been awaiting the finalisation of its design plans and the construction contract. The managing director of Leighton Asia (Northern), Joe Dujmovic, said last night the City of Dreams would be a "significant landmark" in Macau.
Leighton has completed the first stage of Steve Wynn's Wynn Macau which opened in September -- the first Western-style casino/hotel complex to open in the city since it opened up its casino market to outsiders in 2002.
The City of Dreams site, on Macau's Cotai strip, is next to the site of the massive Venetian casino/hotel/shops complex which will feature Venetian-style canals and is due to open next year. Leighton is now working on the second stage of Wynn Macau.
PBL/Melco's first Macau casino, the upmarket Crown Macau, is due to open in April next year.
source : http://www.news.com.au/business/story/0,23636,20593062-14334,00.html
