Naga2 also making progress
NagaCity Walk, the shopping complex linked to the NagaWorld casino resort in the Cambodian capital of Phnom Penh, is on track to open in the second half of 2016, possibly as early as August, according to GGRAsia, based on a progress report from Union Gaming Securities Asia Ltd.
After a team from Union Gaming visited the site, the brokerage issued a note adding, “More importantly, there has been significant vertical progress of Naga2, which we believe is only a few weeks away from topping out. Based on the current pace, we would look for the property to be turned over to the company by early 2017 for interior fit-out.” The latter expansion will add more than 1,000 new hotel rooms and luxury suites, up to 300 gaming tables and 500 electronic gaming machines, according to filings from NagaCorp to the Hong Kong Stock Exchange.
Union Gaming reports that NagaWorld is appreciating in volume, even as GGR continues to tumble in Macau. Morgan Stanley added that globally, VIP business stabilized in the first quarter after eight quarters of negative growth. The investment bank predicts Cambodia will post the highest VIP revenue growth rate worldwide for 2016 at 39 percent.
Union analyst Grant Govertsen said the firm is “adjusting our 2016 estimates slightly downward to reflect bad (house) luck in first half 2016, although we believe there is more upside risk than downside from here. Our model currently contemplates a January 1, 2018 opening for Naga2, but we think there is at least some possibility it could open in the second half of 2017 based on the current pace.”
