RESORTS World Sentosa (RWS) announced yesterday that it will throw open its doors on Jan 20, but those who want to visit the Universal Studios Singapore Theme Park or roll the dice at its casino will have to wait a little longer.

Announcing the highly anticipated opening date yesterday, RWS said that when Jan 20 rolls around, four of its six hotels and 10 restaurants and lounges will begin operations.

The four hotels are the Festive Hotel, Hard Rock Hotel Singapore, Crockfords Tower and Hotel Michael. The restaurants and lounges include modern patisserie Boulangerie on the second level of Festive Hotel and Indian restaurant Rang Mahal on the second level of the Hard Rock Hotel.

The IR’s theme park, FestiveWalk – a 500-metre stretch featuring retail outlets, restaurants helmed by celebrity chefs and clubs – and theatre are slated to open within the next two months, RWS spokesman Robin Goh said yesterday.

He said the testing of rides has already begun, and added that the theatre is ready for use – it staged its first event, the ChildAid charity concert, late last month.

No firm date was given for when the casino will open, but it is likely to be in the first quarter of the year, according to Mr Goh, who said an application has already been made to Singapore authorities.

The other attractions at the $6.59 billion, 49ha resort, including an oceanarium touted as the world’s largest, a marine museum and the two other hotels, will open much later: Construction is expected to begin only early this year.

The announcement has puzzled some analysts, who wonder why the IR is opening its hotels before most of its attractions are ready.

Mr Colin Tan, director of research and consultancy at real estate consultancy Chesterton Suntec International, called RWS’ move strange. ‘It is unlikely that visitors would make a trip to Sentosa to stay in a half-complete resort,’ he said.

When contacted, however, RWS said it was confident of drawing visitors come Jan 20. ‘There is a lot of anticipation for the resort and people are excited to be the first to experience it. We are, after all, Singapore’s first integrated resort,’ said Mr Goh.

Analysts, however, remain sceptical.

CIMB-GK economist Song Seng Wun said that being the first IR to open gives RWS bragging rights, but little else. ‘You may have a few people who want a preview of what is on offer. But it is more important that everything else opens soon,’ he said.

RWS has said from the time it won the right to open an IR here in 2006 that its targeted opening date was early this year.

At the preview for RWS staff yesterday, the chairman of the Genting Group and Resorts World Sentosa Lim Kok Thay reiterated this. He said: ‘We have been single-minded about this – no distractions or excuses – and today, we are happy to say we marked the first milestone towards delivering on that promise.’

Singapore’s other IR, Marina Bay Sands, is slated to open in mid-April, after several delays. Parent company Las Vegas Sands (LVS) said in 2006 that it would open by the end of 2009. But in July last year, the date was pushed back to end-March this year.

Just last month, LVS chairman Sheldon Adelson further delayed the opening till mid-April, saying that it was not going to open ‘until the time is right’.

Source: Straits Times, 6 Jan 2010

One of Singapore’s integrated resorts, Resorts World Sentosa, will begin opening its doors in phases from January 20.

The resort said its four hotels – Crockfords Tower, Hotel Michael, Festive Hotel and Hard Rock Hotel Singapore – will be opened on that day.

Resorts World Sentosa began operations at two of its four hotels on Tuesday, and employees and their families were the resort’s main guests before the hotels’ public opening.

Resorts World Sentosa’s chief executive, Tan Hee Teck, said the phased schedule would allow the resort and its 10,000 employees to run in operations and deliver the expected guest experience.

The integrated resort (IR) said it is working closely with the authorities to obtain approvals for Universal Studios Singapore, which will open next.

As for the casino’s opening date, it will be announced when the IR gets notice of its casino licence.

Together, the four hotels offer a combined inventory of 1,350 rooms and 10 restaurant outlets at their opening.

Another two hotels at the resort – Equarius Hotel and Spa Villas – will add another 500 rooms when they are launched in phase two after this year.

The IR will also open the world’s largest Marine Life Park and its Maritime Experiential Museum in the second phase.

Source: Channel News Asia, 5 Jan 2010

Proportion hits 43% in first 10 months, from 39% in ‘07-’08

Foreigners, including permanent residents, picked up nearly 43 per cent of the homes transacted in Sentosa Cove in the first 10 months of this year, up from about 38-39 per cent in 2007 and 2008.

A Savills analysis of caveats data captured by URA’s Realis system also showed that buyers from ‘Western’ countries – which it defined as those from Europe, North America, South America, Australia and New Zealand – made up four out of every 10 foreign buyers in Sentosa Cove between the fourth quarter of 2004 and Q4 2009.

In that period, such buyers were more active in Sentosa Cove than in the other sought-after districts of 1, 9, 10 and 11.

DTZ executive director (consulting) Ong Choon Fah observes: ‘Buyers from Western countries appreciate the lifestyle elements in residential developments a lot more. In their home markets, units in a project that face the water or bay can sometimes be priced double that of units that don’t have such a view.’

Savills found a total of 1,297 caveats lodged for purchases of private homes in Sentosa Cove over the five-year period, of which 487 (or 37.5 per cent) were from foreigners (including permanent residents). Singaporeans bought 705 units, giving them a 54 per cent share.

In the first 10 months of 2009, 133 caveats were lodged for homes in Sentosa Cove. Of these, 57 were bought by foreign buyers, with Malaysians having the largest share of 25 per cent or 14 caveats, followed by Indonesians, UK citizens, mainland Chinese and Hongkongers.

DTZ’s Mrs Ong said: ‘What Sentosa Cove offers is very unique. It’s as close to waterfront housing as you’ll get in Singapore, plus it’s a gated community, with limited car access to outsiders. Sentosa Cove used to be like a construction yard. Now, however, most of the homes have been developed, and foreigners may be even more inclined to buy.’

The additional draw to Sentosa Cove among foreign buyers is that it is the only location in Singapore where foreigners who are not Singapore permanent residents are allowed to purchase landed property.

However, they must still seek permission from the Land Dealings (Approval) Unit under the Singapore Land Authority.

The approval time for Sentosa Cove has been specially fast-tracked to 48 hours – compared with about four weeks for applications by PRs seeking approval to buy landed homes on mainland Singapore.

Mrs Ong reckons that there is scope for the share of foreign buying to increase further next year, with the opening of the two IRs.

Also, the completion of Phase One of Marina Bay Financial Centre will strengthen Singapore’s positioning as a global business centre.

‘When high networths buy, they talk about their investments to their clique of people. That can generate further interest in Sentosa Cove,’ she says.

Steven Ming, Savills director of investment sales & prestige homes, says that foreign buyers’ presence is a critical factor for prices of luxury homes in Singapore, including at Sentosa Cove.

He says: ‘If we look back, in 2006-2007 when foreigners were buying in Singapore, luxury prices ran up quite a bit.

‘At the start of this year, there was very little foreign interest in the Singapore property market and it was mostly the mass and mid-segments that were doing well.

‘In the past few months, however, foreign interest has returned and we’re seeing a pick-up in prices on Sentosa Cove.’

Source: Business Times, 7 Dec 2009

More over-$10m home sales in Jan-Oct than in previous four years

Homes in Sentosa Cove drew strong interest from high-net- worth investors in the first 10 months of this year – more properties costing $10 million and above were transacted during this period than in the preceding four years.

Property consultancy Savills Singapore said that its analysis of URA Realis data as at Dec 1, also shows that September and October this year were particularly active months.

In fact, the three biggest ever residential transactions in Sentosa Cove – at $20.18 million, $22 million and $30 million respectively – took place during this period. The largest involved a completed bungalow at Ocean Drive which changed hands in the secondary market in October. The $30 million sale price works out to $1,753 per square foot, based on a land area of 17,115 square feet.

BT understands that the bungalow was purchased by two Chinese citizens who are also Singapore permanent residents. The seller is a locally incorporated company.

The second and third largest deals involved subsales of two villas at Paradise Island for $22 million and $20.18 million in September.

Overall, Savills’ analysis shows that the number of caveats lodged for homes in Sentosa Cove costing $10 million and above shot up to 24 in the first 10 months of 2009 – from just 17 between Q4 2004 and Q4 2008.

Over half or 14 of the 24 deals were sealed in September and October. The firm said that a more positive global economic outlook at the time, before the recent news of Dubai World’s debt problems, gave confidence to investors to make big-ticket purchases such as super-luxury homes.

Other above-$10 million homes sold in the two months include four condo units at SC Global’s Seven Palms Sentosa Cove; a villa at Sandy Island that fetched $16.57 million or $1,950 psf of land area in the resale market; and a bungalow at Treasure Island which sold for $14.25 million or $1,662 psf, also in the resale market.

Savills said that the steady recovery of the Singapore economy in the past few months and the Republic’s renewed prominence on the global financial map have helped fuel optimism among investors to park monies here.

Singapore is also a ‘relatively cheaper’ destination to buy luxury properties compared with, say, Hong Kong. Luxury property prices here are still below their peak levels.

Savills director of investment sales & prestige homes Steven Ming offered another reason for the surge in transactions in October: according to anecdotal evidence, some high-networth mainland Chinese were in Singapore shopping for properties during their National Day Golden Week holiday.

Across all price bands, the total number of caveats lodged for private homes in Sentosa Cove shot up from 72 in the whole of last year to 133 in the first 10 months of 2009. Even so, the latest figure is just 26 per cent of the peak 516 transactions in 2006.

Savills said that the bulk of the 2009 transactions were in the subsale and resale markets. Primary market deals involving developer sales accounted for just 9 per cent of caveats, reflecting the limited release of new projects this year.

A breakdown of 2009 transactions shows that the number of caveats (both primary and secondary markets) lodged rose from nine in Q1, to 49 in Q2, and 51 in Q3. In October, there were 24 deals – the highest monthly figure for 2009 – bucking the trend of slowing property sales seen generally in Singapore.

Savills credits the approaching opening of the integrated resorts (IRs) with helping to generate a renewal of interest in the super-luxury residential market.

Prices also appreciated with the increase in transactions – the average unit price for landed homes rose from the recent low of $1,150 psf of land area in Q1 this year, to $1,533 psf in Q3 – up 33 per cent. It was up 12.2 per cent from September to $1,647 psf in October. But this figure was still about 38 per cent below the peak figure of $2,643 psf in Q1 2008.

Condominium prices in Sentosa Cove have also firmed. The average price climbed from a low of $1,200 psf in Q4 2008, to $1,804 psf in Q3 this year and $2,117 psf in September before easing to $2,030 psf in October.

The latest figure is 16.5 per cent shy of the $2,431 psf high seen in Q1 last year. Savills said that the October figure was shored up by four caveats lodged for units at Seven Palms Sentosa Cove with prices ranging from $3,091 to $3,353 psf.

Excluding these transactions, the average price for the month would have slipped to $1,658 psf.

DTZ executive director (consulting) Ong Choon Fah reckons that Sentosa Cove prices will continue to appreciate next year, although a lot will depend on the wider property market. ‘Prices in Sentosa Cove could be more volatile than in the prime districts on the mainland because Sentosa Cove buyers are relatively more investment driven than motivated by owner occupation, compared to the prime districts. When markets go up or down markedly, investors may be more inclined to sell than owner-occupiers, whether it is to cut loss or realise a gain,’ she added.

Source: Business Times, 7 Dec 2009

Interest in waterfront homes at Sentosa Cove seems to have returned in recent months, as the opening of Resorts World at Sentosa looms. Since the beginning of November, a total of six properties — three luxury condominiums and three landed homes — have changed hands in the resale market at $1,406 to $2,423 psf.

In the week of Nov 6 to 13, one of the 29 villas on Ho Bee Group’s Paradise Island — a double-storey unit on 8,105 sq ft of land — was sold for $11.4 million, or $1,406 psf. The villas were completed in May and Ho Bee sold the last one for $22 million in August. Each villa has a private berth and all rooms have views of the waterways. The owner had purchased the villa in April 2007 for $9.18 million, or $1,133, hence reaping a 24% capital gain. In early November, a 7,029 sq ft villa sold for $10.8 million, or $1,536 psf. The owner had lso purchased it at launch for $7.1 million ($1,010 psf) in April 2007 and saw the price appreciate 52% in the past 2½ years.

When the villas at Paradise Island were launched, prices ranged from $1,047 to $1,208 psf, according to the URA Realis database of caveats. Since then, prices have climbed, reaching $1,500 psf two months ago, a level last seen in October 2007.

Meanwhile, a terraced house in the 99-year leasehold Ocean 8 enclave developed by IJM Properties Sdn Bhd, a unit of the Malaysian conglomerate IJM Corp Bhd, was sold for $6.4 million, or $2,423 psf, in a caveat dated Nov 13. The 2,637 sq ft house had changed hands twice before. The original owner purchased the property in October 2006 for $2.92 million ($1,109 psf), and flipped it in January 2007 for $3.5 million ($1,326 psf), enjoying an 20% gain.

The $2,423 psf is the highest psf price achieved at Ocean 8 to date. The last time a unit in the stretch of eight terraced homes changed hands above $2,000 psf was in May last year, when two units were sold for $5.5 million each — a 2,626 sq ft unit went for $2,097 psf, while a 2,691 sq ft unit was sold for $2,046 psf.

Just up the street along Ocean Drive is the 116- unit The Azure, a 99-year leasehold waterfront condo development by Frasers Centrepoint and completed last year. The property was launched in September 2005 at around $900 psf.

According to a Nov 10 caveat, a 1,701 sq ft apartment on the third floor was sold for $2.9 million, or $1,705 psf. This is the second time this year the unit has changed hands. It was last sold in June for $2.43 million ($1,429). The original owner purchased the property in October 2005 for $1.77 million ($1,043 psf).

At the end of Ocean Drive is the 264-unit The Oceanfront @ Sentosa Cove, which is being developed jointly by TID Pte Ltd and City Developments Ltd and expected to be completed in 1Q2010. A two-bedroom apartment on the eighth floor has changed hands three times since it was purchased in August 2006. The 1,711 sq ft unit was most recently sold for $3.1 million, or $1,811 psf. The seller appears to have made a quick flip as, according to URA Realis, the previous transaction was just this September for $3 million, or $1,753 psf. The initial owner purchased the unit at launch in 2006 for $2.28 million ($1,337 psf) and sold it in April 2007 for $3.25 million ($1,899 psf), a 42% price gain.

Source: The Edge, 7 Dec 2009

It is just a matter of months now until the grand opening of the Universal Studios theme park in Singapore, but that excitement was tempered somewhat when the much-awaited ticket prices were finally made public on Wednesday.

Those who had been hoping for something more affordable would certainly have been baulking at the admission costs, because an outing to the famous attraction – South-east Asia’s first and only Universal Studios – will not come cheap.

A one-day weekend pass will cost $72 for adults, $52 for children and $36 for senior citizens. Visiting on weekdays will be slightly easier on the wallet – $66, $48 and $32 respectively.

Let’s do the math: A typical family of, say, two adults and three children planning an outing to the theme park on a Saturday will have to fork out $300 in ticket charges alone. Driving into Sentosa will cost an extra $12 ($2 per person and $2 for the car), and at least another $3 in car park fees on the island. Factor in some exorbitantly priced meals, snacks and a souvenir or two and a day’s outing could easily come up to well over $400.

Staying at one of the Sentosa integrated resort’s (IR) hotels is also going to set one back a fair sum. The rates for three hotels have since been made public – deluxe rooms at the Festive Hotel start at $400 a night, it’s $450 to stay at the Hard Rock Hotel and $500 at Hotel Michael.

My initial worry is that many Singaporeans, particularly from the lower-income groups, will probably never get the chance to visit and enjoy the theme park, even if there are some subsidies thrown in.

If Resorts World Sentosa (RWS) wants to realistically achieve its target of seeing up to 30,000 visitors at Universal Studios each day, there are no two ways about it: attracting the locals is their best hope.

Getting them to visit – and multiple times, at that – is key for any attraction if investment costs are to be recouped. The tourist segment is crucial, too, but most foreigners would likely visit the theme park just once and then choose to see other attractions on subsequent visits.

Singapore’s ticket prices are cheaper than Universal’s two other attractions in Orlando, Florida in the United States, and in Osaka, Japan, which cost US$79 (S$109) and 5,800 yen (S$90) respectively for a full-day pass.

Over at Disneyland in Hong Kong, an adult ticket goes for HK$350 (S$63), while Disneyland in Paris charges 52 euros (S$107).

But interestingly, Universal in Florida charges residents there much lower ticket prices – US$55 for an adult full-day pass if one buys the tickets online. RWS, however, has kept mum so far about whether there would be a similar incentive for entice more Singaporeans to visit.

A spokesman was, however, quoted in reports yesterday that there would be tie-ups with RWS’ local partners to offer Singaporeans attractive packages and rates, particularly for off-peak periods.

It would be wise to hook locals from the start by offering family package discounts, or allow children under 12 to enter for free, or perhaps giving ticket-holders vouchers that can be exchanged for drinks, snacks or a souvenir – anything that will make the experience as memorable and positive as possible.

Leaving a lasting first impression would go a long way to making sure that locals will want to return again. After all, as the RWS spokesperson was quoted as saying, the Sentosa IR where the theme park is housed is ‘a place for every Singaporean’ and it is in the interest of the IR to ‘reach out to everyone, not forgetting grandmas and grandpas’.

The buzz surrounding Universal Studios Sentosa has been amplifying over the past few months. I know of many friends who are chomping at the bit to try the world’s tallest duelling rollercoaster or step inside the world’s first Far Far Away Castle from the Shrek movies.

If RWS plays its cards right from the get-go, it could be decisive in ensuring that the theme park remains a hit with Singaporeans and not go the way of forgotten and now-defunct attractions such as Tang Dynasty City in Jurong and the Fantasy Island water theme park in Sentosa.

Source: Business Times, 20 Nov 2009

One of his two adjoining plots was resold at same price, other up for grabs

A FOREIGN investor who bought two adjoining bungalow plots on Sentosa Cove in 2008 did not complete the transactions, it has emerged.

Sentosa Cove has since re-sold one of the plots to a local buyer at the same price that the foreign investor had offered for it – $1,688 per square foot (psf) of land. But the other land parcel is still up for sale.

The plot that was re-sold has a land area of about 9,700 sq ft, which means that the total amount paid for the site is about $16.4 million.

The land parcel was first put on the market in March 2008, and sold at the end of that year through a private treaty. But after the foreign investor, who is understood to be a Chinese national, did not make payment according to schedule, the plot was put on the market again. It was sold to the local buyer about two months ago.

Sentosa Cove’s general manager Jason Yeo said that the fact that the plot was re-sold for the same price as in 2008 shows that the fundamentals of the residential enclave on Sentosa island are intact.

His firm, which handles State land sales at Sentosa Cove, received offers to buy the property at lower prices. But he held on to it until someone offered the right price.

However, the second plot, which is slightly bigger, has not yet received an offer deemed to be acceptable. The parcel, which is around 12,000 sq ft, was sold for about $1,650 psf to the foreign investor. The total quantum works out to around $19.8 million.

‘There has been interest from the market for the site, but they are not able to meet our reserve price,’ said Mr Yeo. Sentosa Cove is not aggressively marketing the site, he said.

The land parcel is the only one to remain unsold in the entire Sentosa Cove residential precinct, which will have 8,000 residents by the time all homes there are completed by 2014.

Mr Yeo said that all earlier land transactions – including condominium sites sold to developers as well as landed plots sold to individuals and investors – have been completed. Work on the island is progressing well and some 3,000 residents will be living on the island by the end of this year, he added.

Sentosa Cove has also found takers for some of the commercial space on the island. Two tenants – 7-Eleven, which will open a convenience store with a new-to-Singapore concept, and a launderette – have taken up about 30 per cent of the commercial space available at the arrival area of the Sentosa Cove residential enclave. The arrival plaza has a total lettable area of about 10,000 sq ft.

Source: Business Times, 16 Nov 2009

Faced with competition from regional countries also eyeing the benefits of the casino gaming industry, the two IRs cannot afford to be complacent

A FEW weeks ago, Singaporeans watched in awe the hoisting of a seven hundred tonne beam linking the towers of Marina Bay Sands (MBS) to form the Skypark – a vast rooftop garden, while at Sentosa, Resorts World Sentosa (RWS) was working on the finishing touches to the rides for its Universal Studios Theme Park.

Just how awesome these two integrated resorts (IRs) are is becoming more visible by the day. Together, they will cost in excess of $13 billion when they are complete. Not only will they be iconic attractions, but within five years they could bring in 17 million top quality tourists who will spend in excess of $30 billion and help create over 100,000 jobs, directly and indirectly.

Some sceptics wonder how Singapore’s IRs will be impacted by Macau. But there is unlikely to be much overlap; moreover, the market is big enough for both.

For the last 65 years, Macau has been basically a gambling colossus and will always be, even with top attractions such as The City of Dreams, Venetian and the MGM Grand. It is amazing that with a mere three licences issued to Stanley Ho’s Sociedade de Jogos de Macau Holdings, Sheldon Adelson’s Venetian and Steve Wynn’s Wynn resorts, Macau’s gambling scene has evolved into 32 casinos. Most visitors cannot tell which are the ones with the original licences and which are sub-licencees or concessions.

Even within new casinos, you will find junket rooms of up to 12 tables operating on a joint venture basis, such as Star Cruise’s Crockford Room and Putra Sampoerna’s Mansion House – both located at the MGM Grand. The Macanese, in conjunction with their Hong Kong associates, have reinvented the game of baccarat, which represents close to 70 per cent of each casino’s wagering.

Singapore’s IRs are setting their sights on total entertainment with great experiences in gaming, gourmet dining, shopping, meetings and exhibition activities, great accommodation and dazzling shows.

Junket operators who bring high-rollers into Macau have introduced ‘parallel betting’, under which the operators use the outcome of bets at the casino table, but accept side bets from their clients that are a multiple of the actual table bet.

This effectively reduces the 39 per cent gaming tax rate which the casino pays, while the bettor will be able to settle either way with the junket operator when they return to the mainland. Junket operators have also introduced insurance such as the blackjack game to baccarat, which ensures the bettor a guaranteed win if he has a high-point card before the house draws the third card.

Junket operators are critical to the survival of the gambling industry in Macau. They enable casino operators to pay less punitive taxes, assist the bulk of mainland Chinese to make settlements back home, thus overcoming currency restrictions and provide credit to players.

Notable junket operators such as Amax and Neptune, both listed Hong Kong entities, are supported by many casinos. They raked in close to $10 billion in gaming revenue in 2008. However, they are also facing strains – many are saddled with uncollectable debts, the Chinese government has been coming down hard on embezzlement and abuse by both Chinese officials and people in the private sector.

The practices that are rampant in Macau will not be found in Singapore’s two IRs. The Singapore authorities have carefully planned the entire operation and have anticipated many of the possible abuses. Most important of all, there will be no sub-licencees, which effectively reduces the policing area.

Singapore’s IRs are setting their sights on total entertainment with great experiences in gaming, gourmet dining, shopping, meetings and exhibition activities, great accommodation and dazzling shows. However, gaming will still be an important revenue source – up to 60 per cent. Singapore authorities must be careful not to derail this. Already, there are concerns about the admission levy for locals, the restrictions on ATMs and exclusion orders. People come into the gaming rooms of the IRs to have a great time. So our regulators must be practical in their enforcement.

Singapore’s superb infrastructure and security has already attracted many high net worth families to make this country their second home. MICE operators are also already taking bookings to hold meetings and exhibitions in Singapore.

London is a good example of how casinos helped attract many Arab families to relocate there when their second homes in Beirut were overrun by the civil war in the 1970s. Of course, casinos were not the only attraction: London, like Singapore, has some of the best private schools, medical facilities and shopping. But for high net worth individuals, its casinos were an important part of its entertainment value. More than 5,000 high net worth families from Beirut and elsewhere in the Middle East moved to London during the late 1970s, causing a mini boom in the markets for housing and top-end services.

Today, many wealthy foreigners are choosing to spend time in Singapore – as evidenced by the notable levels of purchases of property by foreigners in recent years. With the opening of the IRs, it is likely that demand for high-end accommodation will increase further.

While the initial novelty and stunning attractions of Singapore’s IRs could bring in considerable tax revenues as well as tourist dollars, Singapore cannot afford to be complacent. Other governments in the region are also eyeing the benefits of the casino gaming industry. Taiwan will soon approve casinos in Penghu Island. Tokyo is about to announce an IR at Odaiba in Tokyo Bay.

The Philippines is in the midst of building a massive IR in Manila Bay and soon, we may witness the legalising of illegal casinos in Vietnam, Cambodia and Laos. It may not be long before Thailand and Indonesia (Bintan) too approve licences for gaming operations within their jurisdictions. There are already no less than five casino ships trawling international waters around Singapore, drawing large numbers of patrons.

In the face of such competition, it will be a constant challenge for Singapore’s IRs to keep reinventing themselves to draw in high-rollers from around the world and keep their attractions compelling to tourists.

By Ronald Tan, a casino gaming consultant who has been associated with the industry since the 1970s

Source: Business Times, 7 Nov 2009

Genting Berhad is on track to open the ‘Resorts World at Sentosa’ in Singapore by early January 2010, said its chairman and chief executive Lim Kok Thay.

Bernama news agency quoted Mr Lim as saying the project, which cost S$6.6 billion, would attract 12 to 13 million visitors in the first full year of operation.

“Construction is going on smoothly. We are targeting to open it by early January 2010,” he told reporters after the signing ceremony of its RM1.6 billion medium-term notes programme (MTN) with CIMB Investment Bank Bhd and HSBC Bank Malaysia Bhd on Thursday.

Genting’s subsidiary, GB Services Bhd, has priced its inaugural issuance of RM1.45 billion nominal amount of 10-year MTN pursuant to its RM1.6 billion MTN programme.

The MTN programme is guaranteed by Genting and has been assigned ‘AAA’ rating by RAM Ratings Services Bhd.

Lim said the proceeds from the MTN issuance would be used by Genting and subsidiaries for investment, refinancing, working capital requirements and other general corporate purposes.

“We will continue to grow our existing businesses and explore opportunities to expand globally,” he said.

On the disposal of its non-core asset like power as well as oil and gas divisions, he said: “We are speaking to interested parties but we are not close to any deal.”

Source: Channel News Asia, 6 Nov 2009

Universal Studios aims to draw 4.5m visitors; 20 rides to open next year

AT around S$70 per entry to Universal Studios Singapore (USS), Genting Singapore, which invested more than S$1 billion in the theme park could reap around S$315 million a year in ticket sales alone.

Speaking at a news conference yesterday, Douglas Trueblood, general manager (sales & marketing) for Universal Parks and Resorts, said the target is to attract 4.5 million visitors a year to the theme park at Resorts World at Sentosa (RWS), which is owned by Genting Singapore.

Assuming USS sells 4.5 million tickets at S$70 apiece, ticket sales could hit S$315 million.

Mr Trueblood did not reveal ticket prices, but Genting Singapore chairman and CEO Lim Kok Thay has said they will be lower than those at other Universal Studios theme parks.

Earlier estimates by analysts put the entry price at around S$80, compared with about US$70 in the US and 5,800 yen in Japan.

Analysts at Morgan Stanley Research (Asia-Pacific) expect entry prices to USS to be even lower at around S$70.

In a recent Morgan Stanley Research report, it was also estimated that USS could register total revenue of S$388 million for 2010, S$491 million for 2011 and S$545 million for 2012. This includes revenue from merchandising and F&B.

Interestingly, Morgan Stanley Research said Genting Singapore can offer cheaper entry tickets because of the lower construction cost of USS at about US$1 billion, which it said is about half the cost of Universal Studios Japan.

Morgan Stanley Research noted that no details have been made public on the USS franchise fee, but said it is likely that RWS will have to pay an upfront fee as well as a share of gross profit to Universal Studios once the theme park is operating.

Giving an update on USS which is in the final stages of construction, Mr Trueblood said that of the park’s 24 rides, 20 will open next year, with 18 of them original or adapted for Singapore.

Universal Parks & Resorts chairman and CEO Tom Williams said: ‘Universal Studios Singapore will be a unique experience and family destination with many new rides, shows and themes that can’t be found at other Universal Studios parks.’

USS will consist of seven themed zones that surround a man-made lagoon. The zones are: The Lost World; Ancient Egypt; Sci-Fi City; New York; Hollywood; Madagascar; and Far Far Away. Rides including the Jurassic Park Rapids Adventure, WaterWorld and Revenge of the Mummy will be located within these zones.

Mr Trueblood revealed that a Transformers attraction will open in 2011 and other new attractions will be added in turn. ‘Over the years, we will evolve,’ he said.

Source: Business Times, 21 Oct 2009