Melco International Development Ltd, the Hong Kong-based leisure gambling and property company, has taken a 70.74% controlling stake of the integrated casino resort project in Cyprus, with the agreement to purchase Hard Rock International’s interest in the venture.
The announcement came a day after the government signed the license agreement with Hard Rock for the 500-room casino resort that will be Europe’s biggest, will provide 4,000 new jobs and attract some 300,000 more tourists a year.
Melco press release currently holds 35.37% of the project company and has entered an agreement to purchase Hard Rock’s interest, completion of which is subject to the approval of the Cyprus government.
The remaining 29.26% belongs to CPZL (the Cyprus Phassouri (Zakaki) Limited).
On Monday, Hard Rock announced that it was selected along with its partners for the first and only casino resort license granted by the government of Cyprus.
“After recently announcing our first casino in Canada, being selected in Cyprus is another strong testament to the power of the Hard Rock brand throughout the world,” the company said in an announcement issued in Orlando, Florida.
The agreement was signed by the President of the National Gaming and Casino Supervision Commission Christos Mavrellis, and a representative of the Integrated Casino Resorts Cyprus Limited consortium consisting of Melco International Development Ltd, Seminole HR Holdings LLC (Hard Rock) and CNS Group (Cyprus Phassouri (Zakaki) Limited).
In his address at the signing ceremony, Tourism and Energy Minister Yiorgos Lakkotrypis said that this will be the only integrated casino resort in Europe and the largest, and one of the best in the world with 136 gaming tables and 1,200 gaming machines, with multiple direct and indirect benefits for the Cyprus economy.
He said that it is the largest infrastructure project that has been built so far in the country which will include a luxury hotel with 500 rooms, a venue for conferences and exhibitions and other activities of 6,000 square metres, a 1,500-seat concert venue and world-class wellness centre of 4,000 square metres, as well restaurants and entertainment venues.
The total amount of the investment, he added, is expected to exceed half a billion euros, and it is estimated that more than 4,000 jobs will be created during the construction phase and many more during its operation, while it will bring additional budget revenues and attract foreign investment to Cyprus.
In the first four years, the government will have revenue of EUR 2.5 million from the annual casino license fee, while the second four-year period the fee will rise to EUR 5 mln. The casino tax will be 15% of the gross income from games and will be paid monthly.
The Minister said that the project includes four satellite casinos, in Nicosia, Larnaca Famagusta and Paphos, and the operation of a temporary casino in Limassol until the construction of the resort.
Representative of the Consortium, Andy Choy, in a brief address assured that high on the consortium’s priorities is the achievement of the targets set for the economic development of the country with minimal social and environmental impacts, while at the same time expressed his thanks for the confidence shown to the companies comprising the consortium.
