Las Vegas Sands expects $1 billion after luxury condo sales
April 19th, 2007 - Category: Condo, Real EstateThe casino company run by billionaire Sheldon Adelson said Tuesday it expects about $1 billion in net proceeds from the sale of luxury condominium units under construction at its Palazzo property on the Las Vegas Strip.
Gross proceeds from the sale of 300 condo units are expected to range from $1.45 billion to $1.94 billion, while the condo tower is expected to cost about $465 million to build, Las Vegas Sands Corp. said in a document filed Tuesday with the Securities and Exchange Commission.
The proceeds are “higher than what we previously expected,” Morgan Stanley analyst Celeste Brown said in a research note. She said the proceeds would add about $2 per share in value to the company.
Las Vegas Sands shares were down 51 cents, or 0.58 percent, at $87.87 in late afternoon trading on the New York Stock Exchange.
The company also said The Palazzo - which includes the condo tower, a casino-hotel and mall - would cost $2.56 billion to build, while its Sands Bethworks casino development in Bethlehem, Pa., would cost $637 million. Both price tags exceeded Brown’s estimates, she said. The Palazzo is expected to open later this year, while the first phase of Sands Bethworks is to open in mid-2008.
The company said it was also spending $287 million to expand the Sands Expo convention center, $114 million to refurbish the Venetian tower and $40 million on the 14th floor of the Venezia tower at The Venetian, all in Las Vegas.
Las Vegas Sands made the filing in relation to its marketing of a $5 billion credit facility to refinance its debt, pay for development projects and provide working capital.
Information from: www.azcentral.com
