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Melco Crown raises budget for City of Dreams to P37 billion

Posted on June 18, 2014 09:52:14 PM [ BusinessWorld Online ]

MELCO CROWN (Philippines) Resorts Corp. has increased its total budget for City of Dreams Manila, an integrated resort and casino project at Bagong Nayong Pilipino in ParaƱaque City, which is set to open by the second half of the year.

In a special meeting yesterday, Melco Crown’s board of directors approved an increase in the project cost to P37 billion, from P28 billion previously, as well as a top-up placement of the company’s shares.

In a disclosure yesterday to the stock exchange, Melco Crown also announced a one-day voluntary trading suspension in anticipation of an announcement concerning a fund-raising activity.

City of Dreams Manila is a joint venture of Melco Crown and SM Group’s Belle Corp. It will have a casino, high-end restaurants, and three luxury hotels.

It is among the four integrated resorts being developed at the entertainment complex owned by the Philippine Amusements and Gaming Corp. The others are Solaire Resort & Casino of Bloomberry Resorts Corp., The Manila Bay Resorts of Tiger Resorts and Entertainment, Inc., and Resorts World Bayshore of Westin Starwood Hotels & Resort.

Melco Crown’s net loss nearly tripled in the first quarter, to P970.1 million from P338.7 million a year earlier, due to expenses incurred for the development of City of Dreams.

Gross expenses soared to P991.4 million from P338.7 million.

Melco Crown last traded at P12.18 on Tuesday.

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