Premium Retailers Partner With the Grand Canal Shoppes at The Venetian Macau
Written on June 18, 2006 by admin
Las Vegas Sands Corp. (NYSE: LVS) recently announced it has reached
commercial terms with more than 115 premium retailers who will open
stores in the Grand Canal Shoppes at The Venetian Macau-Resort-Hotel,
which is currently being constructed on the Cotai Strip in the People's
Republic of China Special Administrative Region of Macau.
"To date, we have accepted offers with premium tenants for 40% of
the Canal Level retail shops, at average base rents above US$235 per
square foot. This average reflects shops from under 1000 square feet to
almost 10,000 square feet, and includes a number of shops with base
rents above US$400 per square foot. We have also agreed terms on over 60% of the Casino Level retail area. Our gallery floor above the Canal
level is now almost 20% committed.
Across all retail levels we are achieving a blended average base rent in excess of US$145. Together with the previously announced agreement with DFS at the adjoining Mall at Four Seasons, we have agreements on almost 400,000 square feet in total on the Cotai Strip," said Mr. Stephen Weaver, Senior Vice President for Asian Development for Venetian Macau Ltd a subsidiary of LVS and the operator of The Venetian Macau and Grand Canal Shoppes. The foregoing agreements are subject to execution of definitive documentation which is currently being negotiated.
"Retailers understand that the combination of unique design and theming of the Grand Canal Shoppes, 550,000 square feet of Casino, our
Convention business, 3000 all-suite rooms and our other resort facilities will attract the customers that generate premium retail sales," said Mr. Weaver.
"As the master-planner of a potential 3,000,000 square feet of malls in at least seven lots on the Cotai strip, we can create an environment where retailers know that the malls will be of a consistently high standard, well organized and managed, marketed as one destination, and where the tenant mix will allow every retailer to maximize its potential," said Mr. William P. Weidner, President and Chief Operating Officer of Las Vegas Sands Corp.
"Having reached terms with this critical mass of leading retailers satisfies us that we are successfully establishing a new paradigm for casino-resort retailing on the Cotai Strip, just as the Sands Casino in Macau has proved that a new product in casino gaming would attract new customers," said Mr. Sheldon G. Adelson, Chairman and Chief Executive Officer of Las Vegas Sands Corp. "We understand that retailers know their customers best, and the strength of commitment from the best retailers in the market is testament to their belief that their customers will embrace what we will offer at the Cotai Strip."
Modeled on the famous European city of Venice, the one million square-foot Grand Canal Shoppes (GCS) will be the central attraction of The Venetian Macau, allowing visitors to experience the ornate architecture, canals and gondola rides of the historic Italian city. The mall will feature 350 luxury and super luxury shops, including 20 leading food and beverage outlets, a 1,000-seat food court, an up-market nightclub and a 50,000-square-foot luxury spa.
"The Grand Canal Shoppes is the first of the world-class malls we will develop on the Cotai Strip. With access to the worlds most popular and exclusive brands all under one roof, the Cotai Strip will be a world-class retail destination that will have no equal in Asia," said Mr. Adelson. "The overwhelming response from our retail partners and how well they understand and embrace our business model illustrates the alluring power of the Cotai Strip and its emergence as Asia's Las Vegas(TM)."
The Grand Canal Shoppes at The Venetian Macau plan to duplicate the
success of its sister property located inside The Venetian in Las Vegas. The GCS in Las Vegas is immensely successful, achieving sales far in excess of the national average. The Macau version, when completed in 2007, will become the largest facility of its kind in Asia.
"The fact that visitor arrivals to Macau have more than doubled over the past five years is a strong indicator of the type of growth this market could experience and with the massive tourism appeal of the Cotai Strip the top names in lodging, retail and entertainment will continue to join this effort," said Mr. William P. Weidner, president and chief operating officer of Las Vegas Sands Corp. "The opportunity presented by the Cotai Strip is the strongest avenue many retailers will have when trying to establish a presence in close proximity to the most prosperous and fastest growing region in China."
Technorati Tags: cotai, Cotai Strip, Entertainment, macau
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