Packer cozies up to celebs
Moody’s Investor Service says Crown Resorts’ acquisition of a stake in Nobu Hospitality is a “credit negative” for the Aussie-based global development firm.
On October 29, Crown Resorts announced it would pay US$100 million to buy a 20 percent stake in Nobu, named for Japanese celebrity chef Nobu Matsuhisa. The investment “represents a new financial commitment at a time that Crown Resorts has an extensive pipeline of projects to be undertaken over the next four years,” warned Maurice O’Connell, a Moody’s vice president and senior credit officer. “The substantial project pipeline coincides with lower expectations for increasing dividends from Crown Resorts’ investment in Melco Crown Entertainment Ltd.”
Melco Crown is the force behind Studio City, the $3.2 billion casino resort that just opened on the Cotai Strip in Macau. Packer’s partner in the venture, Lawrence Ho, joked that the resort opened during “the worst year in gaming,” as Macau’s gaming industry copes with an unprecedented 17-month downturn.
Moody’s said a “strong and sustainable rise in dividend income” from Melco Crown was unlikely considering the economic outlook for Macau.
The remaining 80 percent of Nobu, which has more than 30 restaurants around the world, is held by Matsuhisa, Hollywood producer Meir Teper and superstar Robert De Niro. Packer may join the Nobu board as one of four directors.
Following the star-studded grand opening of Studio City, attended by De Niro, Leonardo DiCaprio and Martin Scorsese, the Guardian newspaper jeered at Packer for “making the difficult transition from billionaire mogul into adorably trashy celebrity. … (With) his current romancing of the batshit and brilliant ubercelebrity Mariah Carey, James has formally announced himself as a person of interest.”
