Las Vegas Sands Corporation will pay an additional $1 billion to the Singapore Tourism Board (STB) for changes to the Marina Bay Sands (MBS) expansion project. According to the company’s filing, this agreement follows revisions to the project’s design and floor area allocations. The latest payment builds on an initial $963 million premium made in 2019 for leasing the land parcels until August 2066.
Adjustments to expansion plans
The expansion project, MBS IR2, has included several enhancements since its original announcement. These changes required the acquisition of additional gross floor area, including 2,000 square metres allocated for gaming and 10,000 square metres of ancillary space. These adjustments, confirmed in the Second Supplemental Agreement signed on January 8, have prompted the new upfront payment. Las Vegas Sands will also cover the associated land premium costs associated with these additions.
Features of MBS IR2
The MBS IR2 expansion will add a fourth hotel tower with over 570 luxury suites and exclusive casino amenities, including a main gaming area and “sky gaming” in the new tower. Additional facilities will include a 15,000-seat arena, retail outlets, dining options, and over 110,000 square feet of space for meetings, incentives, conventions, and exhibitions (MICE). A rooftop attraction and enhanced SkyPark are also planned as part of the development.
Revised investment and timeline
The estimated total cost for the MBS IR2 project has now reached $8 billion, surpassing the original projection of $3.3 billion. This revised budget includes $4.7 billion for design and construction, $2 billion for land premiums, and $1.3 billion for pre-opening and financing expenses. Despite these adjustments, the project timeline remains unchanged. Construction is scheduled to begin by Jul 8 2025, and is expected to conclude by Jul 8 2029.
Long-term commitment
According to the company, the Second Supplemental Agreement ensures that the allocated floor areas will be used solely for purposes outlined in the initial development agreement, such as hospitality, gaming, retail, dining, and entertainment. Las Vegas Sands’ additional investment reflects its commitment to enhancing Marina Bay Sands’ status as a premier destination in Singapore, ensuring the project aligns with the city-state’s tourism objectives.
The Marina Bay Sands expansion continues to exemplify large-scale integrated resort development, promising a new growth phase for Singapore’s entertainment and tourism sectors. According to a report of The Strait Times last November, MBS saw its net revenue rise by 34.3 percent to $1 billion in the third quarter ending September 30, 2024, up from $756 million in the same period in 2023, driven by the ongoing recovery in travel and tourism spending in Singapore.
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