LVS likely to raise construction budget for MBS expansion to $4 billion

According to Deutsche Bank, it’s likely that Las Vegas Sands (LVS) will modify the projected cost of development for the Marina Bay Sands expansion in Singapore, perhaps raising the budget to $4 billion.

The project’s initial $3 billion estimated cost included $900 million for the land premium paid some years before, according to a filing by LVS dated October 2023. But since then, rising labor and material costs as well as inflation have driven up prices.

The $3.3 billion expansion proposal includes a 1,000-room and suite hotel tower, MICE facilities, a 15,000-seat stadium, and a rooftop swimming pool. Nonetheless, analysts at Deutsche Bank now forecast that the costs connected with expanding real estate would be above $4 billion, taking into account comparable expansions and the cost creep associated with similar projects.

According to Bloomberg, LVS planned to fund the expansion with bank loans totaling S$10 billion ($7.4 billion) as early as this quarter. Patrick Dumont, President and Chief Operating Officer of LVS, said last year that the new tower expansion may begin in “six months to one year,” subject on clearances, however a precise completion date for the project has not been revealed.

Original story by: Asia Gaming Brief