MelcoLot Ltd., subsidiary of Hong Kong-listed gambling operator Melco International Development Ltd., announced that it is still interested in developing a casino resort in Barcelona, in spite of the fact that it had decided to terminate its contract with local partner Veremonte España SL.
The two companies revealed that the partnership had been ended as they could not find basis for further collaboration. They said in a Friday statement that a notice for the withdrawal of the joint venture from the tender process for a casino resort in Barcelona was sent to the Catalan government last week. And the partnership is expected to be wound up anytime soon. No further information was provided.
In August 2014, MelcoLot confirmed that it had submitted its bid to run a casino in the so-called BCN World, an expensive entertainment complex, which is to be located in Barcelona. Back then the gambling operator said that it would work with Veremonte on the casino project. The two companies set up a joint venture, with both of them holding a 50% share in it. The said joint venture was approved to phase two of the announced tender process.
MelcoLot said on Friday that it is still interested in operating a casino in BCN World, despite the termination of the agreement. The company is also contemplating on the possibility to work with other pre-qualified bidders in future.
The government of Catalonia is yet to issue the license for the operation of a hotel and casino resort in the projected entertainment complex. MelcoLot said in its Friday filing to the Hong Kong Stock Exchange that Catalan officials are expected to announce the results of phase two of the tender process no earlier than the second quarter of 2016.
At first, it was Veremonte that led BCN World’s casino initiative and had agreed to purchase a 500-hectare site for the purpose. However, the company missed two deadlines for doing so and decided to eventually walk out of the project.
Catalan officials said that Veremonte’s withdrawal would not create any difficulties and that the local government is now leading the development of the entertainment complex, which is to feature six casino resorts, a number of hotels, retail spaces, various attractions, etc.
Companies that were approved in the first phase of the selection process were Melco Group, which had submitted two bids – one with Veremonte and one alone, Hard Rock International, which too had partnered with Veremonte, and Grup Peralada, a local hotel and casino operator.
