Inside Asian Gaming

February 2008 | INSIDE ASIAN GAMING 43 Briefs Taubman Invests in The Mall at Studio City Taubman Asia is acquiring a 25% interest in The Mall at Studio City, the retail component of the US$2 billion Macao Studio City, a major mixed use project currently under construction on the Cotai Strip in Macau. In addition, Taubman Asia entered into long-term agreements to perform development, management and leasing services for the shopping center. Taubman will fund an initial cash payment of US$54 million. Taubman’s total investment in the project (including the initial payment, allocation of construction debt and additional payments anticipated in years two and five after opening) is expected to be approximately US$200 million, with an anticipated after tax return of about 10%, net of local Macau taxes. The Mall at Studio City will include approximately 140 stores, including a collection of world-class luxury brands, many in flagship formats. The two-level shopping center with more than 600,000 square feet of leasable area will be accessible from all components of the resort. Pacificnet Acquires Octavian International Pacificnet,aproviderofgamingtechnology,customerrelationship management (CRM) and e-commerce in China, has completed the acquisition of 100% ownership of Octavian International, a supplier of gaming technology, solutions and systems. The acquisition is expected to increase Pacificnet’s overall gaming revenues and profits.The combined company will focus on the high- margin gaming technology business with a global presence and anticipates combined 2008 projected annual revenue of US$116m. Octavian will continue operating under its current name as a wholly-owned subsidiary of Pacificnet. Octavian recently extended its worldwide coverage by gaining GLI certification for its ACP casino management system. Gaming Laboratories International (GLI) is the certification standard as accepted in most gaming jurisdictions worldwide, allowing Octavian to sell in many more countries worldwide. The ACP (Accounting, Control, Progressives) system is already being used by leading casino and gaming operators in Europe, Russia and Latin America. On February 15,Octavian International announced it had finalized a deal with its existing customer, MaxBet, where Octavian Europe will supply an initial order of AGI Gaminator machines with an order valued at more than 3 million euros. The highly popular Gaminator machines, destined for gaming venues in Belarus, Georgia, Romania and Ukraine, are scheduled for delivery within the next four weeks. SJM Delays Hong Kong Listing Stanley Ho’s Sociedade de Jogos de Macau (SJM), which is still hanging on to its leading share of the Macau casino market, last month delayed a proposed US$1 billion listing in Hong Kong. SJMdelayed the launch of its global roadshow andmeetings with local investors, originally scheduled for January, as some potential backers considered the IPO too expensive, the South China Morning Post reported, citing unidentified sources. The English-language daily also said the city’s financial markets regulator, the Securities and Futures Commission, was seeking additional information from the company, again citing unnamed sources. SJM, headed by Stanley Ho, hoped to use the cash to fund its aggressive new expansion in Macau, following the end of Dr Ho’s 40-year casino operating monopoly in the city in 2002, and entrance of new operators who have been developing ambitious new properties and grabbing market share. Ponte 16 Opens The Ponte 16 integrated casino-entertainment resort opened in Macau on February 1, with an elaborate ceremony held at the property’s outdoor plaza. The resort comprises a five-star luxury hotel,the 423-room Sofitel Macau at Ponte 16,a casino,shopping arcade,and food and beverage facilities. Featuring a European theme, one of Ponte 16’s stated aims is to revitalise an economically deprived but culturally rich area of the city, the Inner Harbour. Although located away from the main strip of casinos on the Macau peninsula, it is a mere fifteen minutes walk from the Lisboa, and the two-minute ferry connection between Ponte 16 and Zhuhai provides convenient access for mainland Chinese tourists. The opening phase of Ponte 16 includes gaming areas on two levels offering 105 tables and 300 slot machines, operated under the license of Stanley Ho’s SJM.