Las Vegas Sands weighs deal at Macau casino property
Monday, April 27, 2009 | 8:16 a.m.
Las Vegas Sands Corp. is considering a sale-leaseback deal for one of its Macau casino properties, the South China Morning Post reported today.
The gaming operator plans to put the Sands Macao up for sale for about $1.3 billion after failing to sell its luxury shopping centers in Macau, the newspaper said.
The report said Las Vegas Sands was considering selling the building and continuing to run the casino while paying the new landlord rent based on performance.
The Post said talks for a sale-leaseback were launched when there were no takers for its shopping centers attached to the Venetian and Four Seasons resorts in Macau for the $1 billion asking price.
"It was kind of, 'OK then, if you don't want the malls, do you want the Sands?'" an unnamed source was quoted as saying. The newspaper said the source confirmed the company's gaming license was not for sale.
The Post reported analysts were skeptical of a sale-leaseback of the Sands because of the weak recent performance of the Macau gaming market -- the world's largest -- due to the recession, travel restrictions on visits from mainland China and rising competition in the gambling market near Hong Kong.
Sands officials declined comment, the Post reported.
Discussion: 3 comments so far…
Post a comment
- Most Read
- Discussed
- Most E-mailed
- Franchione potential early candidate for UNLV football post
- Police: 3 arrested in officer’s death have gang ties
- Big fight headed for a New Frontier?
- Hotels rein in risque advertising campaigns
- $60 million to stabilize neighborhoods buys five homes
- Las Vegas condo hotels remain a tough sell — just ask Trump
- MGM Mirage (finally) makes George Strait show official
- Reserve Rebels didn’t have time to panic
- Funny Face: Carrot Top’s stage act a mask of contradictions
- LV companies in denial about problem gambling
Blogs
Elsewhere
Sands China raises $2.5 billion in Hong Kong IPO
Marquardt v. Sonnen scheduled for UFC 109
Bloggity, Bloggity, Bloggity
Will a fourth consecutive title by Jimmie Johnson be good or bad for NASCAR? (2 Comments)
Top Chef: Las Vegas
The Jet Stream: And then there were four
Top Chef Episode 12: On keeping it simple
Miech Again
Chilly start for Chace, but Stanback says he'll warm up (1 Comment)
Elsewhere
Harvard Poker Pro: Texas Hold 'Em skills can help traders
- Live chat
- Tuesday, noon PST
- Chat with Krista Creelman
- Problem Gambling Center executive director Krista Creelman will answer questions about gambling addiction from Las Vegas Sun readers from noon to 1 p.m. Tuesday, Nov. ... Submit question
Calendar »
- 21 Sat
- 22 Sun
- 23 Mon
- 24 Tue
- 25 Wed
-
UFC 106 at Mandalay Bay Events Center
Mandalay Bay Events Center | 7 p.m. to 11 p.m.
-
Julio Iglesias at the Las Vegas Hilton
Las Vegas Hilton
-
Natasha Wicks hosts at Hawaiian Tropic Zone
Hawaiian Tropic Zone | 10 p.m. to 11:59 p.m.
-
Tito Ortiz hosts at Tao
Tao | 10 p.m. to 11:59 p.m.
-
Hiroshima at Santa Fe Station
Santa Fe Station
-
Frank Mir hosts at LAX
LAX Nightclub | 10 p.m. to 11:59 p.m.
-
The Four Tops at The Orleans Showroom
Orleans Hotel-Casino
-
Amir Sadollah hosts at Prive
Prive | 10 p.m. to 11:59 p.m.
The Sun
Locally owned and independent for more than 50 years.
Technorati










Although the current financial troubles of many banks are in part attributable to their real estate-related transgressions, they are looking to their corporate real estate holdings to help bail them out.
HSBC is considering sale and leaseback deals for its headquarters buildings in New York, London, and Paris. The sales are expected to raise more than $4 billion.
Also, Credit Suisse is considering a similar deal involving two London office buildings for about $600 million.
The logic behind these moves is simple: Sale-leaseback deals generate cash. Then, the operating leases are little more than a footnote on the balance sheet.
While the value of commercial real estate worldwide has fallen in the last 12 months and financing can be hard to find, sale and lease back deals are a great strategy!
Sounds like they are getting desperate.
Turn the casinos into timeshares, I own it this week you own it that week and so on.