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  Today Online 5 Mar 07
Don't ruin Sentosa
Letter from Chai Juin Wei

Today Online 2 Mar 07
Second link to Sentosa Resorts World to build 3-lane bridge to Sentosa IR which could cost up to $80m
Tor Ching Li

Channel NewsAsia 1 Mar 07
Genting views Sentosa IR as more important than Macau investment
By Johnson Choo

Channel NewsAsia 1 Mar 07
Star Cruises still reviewing Macau deal

Business Times 2 Mar 07
Genting group wants more time to reshape Stanley Ho deal
By Daniel Buenas

(SINGAPORE) The Malaysian consortium that won the Sentosa integrated resort is taking longer than expected to restructure a controversial deal with Macau gaming tycoon Stanley Ho.

Star Cruises and Genting International now want until March 31 to tell shareholders how they will reshape the deal. A previous deadline of Feb 28 has expired.

Last month, Mr Ho and associates including Malaysian businessman Chua Ma Yu acquired a 6.99 per cent stake in Star Cruises, which has a 25 per cent stake in Genting's Resorts World at Sentosa. In return for the Star Cruises stake, Mr Ho sold Star Cruises and Genting a 75 per cent stake in Macau Land Investment Corporation (MLIC), which is building a hotel and casino in Macau.

This prompted the Singapore government to seek clarification on the plans that Star Cruises and Genting have for Macau. Star Cruises said yesterday it is 'continuing its review of the structure in relation to its investment in MLIC' and has 'applied to the stock exchange for a further waiver' before sending a circular to shareholders on the deal.

Late last year, the Genting consortium, which is part of Malaysia's Genting Bhd group, was awarded the right to build the Sentosa integrated resort (IR) after a $5.2 billion bid that knocked out rivals CapitaLand-Kerzner International and Eighth Wonder.

In a surprise move, the Singapore government said on Tuesday that it will conduct suitability checks on Genting group's new shareholders, including Mr Ho, before deciding whether to give Star Cruises and Genting a casino licence for Sentosa.

Star Cruises and Genting yesterday signed a development agreement with Sentosa Development Corporation - and paid the $605 million land price for the IR - in a move that formalises their commitment to the IR.

In a statement on Tuesday, the Ministry of Home Affairs said the signing of the development agreement and issuing a casino licence are separate matters. According to terms in the IR tender exercise, the successful bidder can apply for the casino licence only when the development is substantially completed and ready to receive visitors, and at least half of the committed investment has been spent.

'The signing of the development agreement allows Genting-Star Cruises to proceed with the construction of the IR,' MHA said. 'However, it does not automatically qualify Genting-Star Cruises for the casino licence, which is needed before it can operate the future casino.'

Channel NewsAsia 1 Mar 07
Genting views Sentosa IR as more important than Macau investment
By Johnson Choo

Genting International says it views the Sentosa integrated resort as being more important than its investment in Macau. The comment came as the gaming company signed the development agreement for the Sentosa project.

The Genting International-Star Cruises consortium officially took over the site for the Sentosa integrated resort on Thursday after paying S$605 million for the land premium.

Construction will begin almost immediately, beginning with excavation works. Genting-Star Cruises will soon be calling for a tender to appoint a main contractor after it has refined and enhanced design details of the project.

There's been much buzz surrounding the project on talk there could be complications following a tie-up in Macau between Genting and Star and a group of investors involving gaming tycoon Stanley Ho.

But the newly-appointed CEO of Resorts World at Sentosa reiterates Genting's commitment to Sentosa. Tan Hee Teck, CEO, Resorts World at Sentosa, says: "Resorts World at Sentosa is fully committed to the success of this development. We fully understand the need for thorough and stringent suitability checks. We are working closely with the authorities, and will ensure that Resorts World at Sentosa meets the suitability requirements for a casino licence."

Genting-Star Cruises also highlighted the fact that it owns 100 percent of Resorts World at Sentosa - while they would only have a minority interest in Stanley Ho's upcoming project in Macau.

In its statement on Wednesday, the consortium said it was working closely with Singapore officials on obtaining the casino licence for Sentosa. But they refused to comment on how this might impact on their investment in Macau.

STB CEO Lim Neo Chian also clarifies that the integrated resort can only apply for a casino licence when it has completed 50 percent of the Gross Floor Area and after spending at least half of the S$5.2 billion development investment.

However, the resort refuses to comment on how Star Cruises will review Stanley Ho and group of investors' 6.99 percent stake in the cruise operator.

Star Cruises had earlier asked the Singapore Exchange up to the end of the month to review the deal.

Resorts World at Sentosa also announced that it will be investing between S$60 million to S$80 million to construct a new 3-lane bridge adjacent to the existing Sentosa Gateway Bridge.

Presently the resort and Sentosa are working out details on how to re-route the traffic in anticipation of an increase in tourist traffic going over to the island come 2010 when the resort is opened. - CNA/ch

Channel NewsAsia 1 Mar 07
Star Cruises still reviewing Macau deal

SINGAPORE : Star Cruises is continuing to review a deal with Macau gaming tycoon Stanley Ho and has asked for more time before sending a circular to shareholders about the deal, the firm said Thursday.

The statement to the Singapore Exchange came as Star's sister company, Genting International, said it would apply for a Singapore gaming licence once it has fulfilled requirements outlined by the government.

Singapore authorities are seeking clarification from Genting and Star Cruises about their deal with Ho which would give him and a group of investors a 6.99 percent stake in the cruise firm.

In return, Star Cruises and Genting International - both part of the Malaysian gaming conglomerate Genting Group - were to get stakes in a new boutique hotel and casino to be operated by Ho's Sociedad de Jogos de Macau.

"The company is continuing its review of the structure in relation to its investment" in Macau, Star Cruises said in its notice, which asked until March 31, an extension from an earlier Wednesday deadline, to send a circular about the deal to shareholders as required by listing rules.

Star Cruises and Genting International are partners in the Resorts World at Sentosa project to build a casino and entertainment complex on Singapore's Sentosa island.

Tan Hee Teck, chief executive officer of Resorts World, said the company intends to apply for the Singapore gaming licence once it has fulfilled government requirements that at least 50 percent of the resort's gross floor area has been completed and half of the development investment has been spent.

"We will apply for the licence at that point," he said at a press conference where the company signed a development agreement with the government agency that manages and promotes Sentosa.

Under the agreement, they can proceed with building of the S$5.2 billion (US$3.4 billion) project. But the Casino Regulation Division of the Ministry of Home Affairs said this week that Genting and Star Cruises are not guaranteed a casino licence.

It said the Ministry of Home Affairs had told Genting-Star it would conduct checks "to ensure that the consortium meets the suitability requirements" before a licence is issued. - AFP/ch

Today Online 2 Mar 07
Second link to Sentosa Resorts World to build 3-lane bridge to Sentosa IR which could cost up to $80m
Tor Ching Li chingli@mediacorp.com.sg

DESPITE some shadows of doubt being cast on its casino license, Genting's Resorts World at Sentosa is going full steam ahead, with the payment of $400 million to start construction and the unveiling of a surprise second bridge.

To allay concerns that the busy Sentosa link would be congested once the integrated resort (IR) springs up in 2009, Genting has thrown in a three-lane bridge costing between $60 million and $80 million.

As some 10 million tourists, excluding local visitors, are expected to visit the resort by 2015, this second link will help ease the anticipated "manifold increase in tourist traffic", said Mr Tan Hee Teck, the newly-appointed CEO of the $5.2 billion Resorts World at Sentosa, at the development agreement signing ceremony.

The completion date of the bridge will hinge on its design, which has yet to be confirmed. Preliminary studies are being done to determine the connection points of the bridge, and some rerouting of current roads will be made in October.

He said: "We are well under way in the project planning stage, and site clearance has been scheduled to proceed this month."

The casino bidder also, once again, gave its commitment to the Sentosa project, even though the licence hasn't been given out yet.

Referring to its sister company Star Cruises' deal with Macau tycoon Stanley Ho--a deal which has caused concern among the authorities here--Genting's managing director Justin Tan said: "Sentosa is the more important project for Genting. We only have a minority interest in Macau."

Singapore Tourism Board deputy chairman Lim Neo Chian, who was present at the ceremony, said that while there are still outstanding issues regarding Genting's casino license, the consortium can only apply for the license after over half of the proposed gross floor area has been built up and over half the committed development investment spent.

With the development agreement inked, Genting International and Star Cruises--which own a 75 per cent and 25 per cent stake in Resorts World at Sentosa, respectively--paid up $400 million to commence construction at the 49 ha integrated resort site. This sum includes 75 per cent of the $605 million cost of the site, a 5 per cent security deposit of the committed development investment and other fees.

Over the next six months, the company will be hiring over 150 people for areas such as project management, marketing and corporate services. Key appointments in project development, human resources, finance, legal, corporate services and information technology have been made, with the executives coming on board over the next two months.

There will be a recruitment drive in the United States to hire top creative talent for the various movie- and show-themed attractions. "It is our intention to have these foreign talent complement and nurture our local talent pool by providing training and skills transfer," said Mr Tan.

Who will take over from Metzger?

ONE of the first tasks for the newly appointed Sentosa Development Corporation (SDC) chairman Dr Loo Choon Yong will be the search for a new chief executive.

Mr Darrell Metzger, who helped transform Sentosa since he joined in 2002, shocked industry players with his resignation last month. The American will be leaving in mid-April for Dubai to help develop a destination resort five times the size of Sentosa in the Middle East.

Said Dr Loo: "We are doing an international search to make sure we get the best candidate, the most appropriate person and the best fit to head Sentosa. We are very sorry to lose Darrell, he has done a great job and Sentosa owes him a lot. But that's life, right? This is the international competition for talent we talk about."

Mr Metzger, who will remain a director on SDC's executive board, said he would help appoint his successor as well oversee the development of Resorts World.

As for his departure, Mr Metzer said: "I don't want to leave but I have to because there is a great opportunity for me in Dubai right now. I chose this time because we've completed nearly all our commitment to Sentosa. We have another three to four years of really hard work on the construction side but it's definitely going to be a success."

Today Online 5 Mar 07
Don't ruin Sentosa
Letter from Chai Juin Wei

I refer to the article, "Second link to Sentosa" (Mar 2).

The last thing we need is for more cars whizzing around on Sentosa.

Unless the second link is solely for pedestrian traffic, the peace, tranquillity and relatively car-free state that makes Sentosa unique may be lost forever, and it will be no different from the main island.

By then, do you think tourists and residents will still want to visit Sentosa?
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