Bloomberry, NagaCorp. ask for extension
Two bidders for the first casino license in the Republic of Cyprus are hard-pressed to find land for their proposed projects, according to the Cyprus Weekly.
NagaCorp. of Cambodia and Philippines-based Bloomberry Resorts asked for and were granted an extension of the deadline for proposals from July to October. The third company, a partnership that includes Melco International Development, Hard Rock International and Cyprus Phasouri Ltd., protested the extension. That consortium already has its parcel lined up.
“It’s fair to say that the land aspect is a challenge,” a source close to one of the bidders told the Weekly. “Companies do find private land, but there are cases where there is a small part of additional state land needed for the casino project.” By parliamentary mandate, casino operators cannot build on state land.
“Even now that property prices have dropped, casino companies have been offered land at ridiculously high prices,” an unnamed real estate agent told the publication. “Excluding state land from the casino procedure proved to be a mistake.”
Another person familiar with the negotiations said, “There is a real chance Cyprus casino licensing will end up with just one offer and this could prove problematic for Cyprus.”
Melco is out to diversify as its hub operations in Macau struggle with a two-year recession. The winning licensee will have about two years to develop the resort; in the interim, it also will have the option of building a temporary casino to generate revenue. The first integrated resort in the southern part of the Mediterranean island must offer a minimum of 100 gaming tables and 1,000 gaming machines. The chosen operator may also develop a smaller satellite casino and a freestanding outlet with just three machines.
The license will be valid for 30 years with an exclusivity clause for the first 15 years. There are currently no legal casinos in the southern part of the republic, which is affiliated with the Greek government; however, several casinos operate in the northern Turkish sector.
The project, approved by the government in August 2015, is expected to boost tourism and create some 25,000 new jobs.
