CROWN LOOKS TO ASIA FOR BARANGAROO SALES
Crown Resorts Ltd. is widening its search for buyers of its luxury apartments at its Sydney casino development in Barangaroo. Only a quarter of the tower units have been sold to date and its A$100 million penthouse is yet to be sold.
The 82 residences, sitting above a six-star hotel and casino, are a key feature of the waterfront resort. Crown is banking on the property sales to offset some of the A$2.2 billion cost of the project.
More than six months of marketing has found mostly Australian buyers for a little over a quarter of the apartments. Crown’s sales push is now spreading to the U.K., U.S., Hong Kong, Singapore, Malaysia and Indonesia, with prices starting at A$9.5 million for a two-bedroom apartment.
The development is not due for completion until 2021, so don’t expect any fire sales soon. However, Crown is broadening its sales campaign as a global trade war threatens economic growth and there is a concern about a slowdown in China. Crown also recognises that some buyers will want to see the finished product before committing.
Reports have also emerged this week that Crown could find itself locked in a legal issue as an expanded nearby development project could block views of the Opera House and Harbour Bridge from the company’s tower.
The Barangaroo Central scheme has recently been expanded from 59,000 square meters to 150,000 square meters. The NSW Government has given the nod to the expansion so that costs arising from the addition of a train station in the area can be offset.
However, Crown has argued that the expanded project is threatening to block harbour and Opera views from its hotel. Under previous agreements with local and state authorities, the company was supposed to have secured such views from the tower’s north-east hotel rooms. Crown was planning to charge A$800 per night for these rooms, once the hotel was fully operational. The blocked view of harbour landmarks could thus cost the company millions of dollars.
It is believed that the view dispute will appear before court within a month if the parties fail to resolve it.
To have a look at how Crown is marketing it’s Barangaroo apartments, see the sales video below.
Sources: Bloomberg, Casino News Daily
