The Venetian Macau is a 3,000-unit all-suites hotel, casino andconvention center complex with a Venetian-style theme similar tothat of The Venetian in Las Vegas. In addition to the 39-storyhotel tower, the Venetian Macao includes approximately one millionsf of retail and dining offerings, and 1.2 million sf of conventionand meeting space. The Four Seasons Macau is a 400-room boutiquehotel and 80,000-square-foot casino that will eventually includeapproximately 800,000 sf of Four Seasons-serviced luxuryapartments, 210,000 sf of upscale retail.

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The amendment to the land concession agreement separates theretail uses of the Four Seasons Macau from the hotel use andcreates four separate parts: a 1.2-million-sf piece that includes afive-star hotel with gaming areas, entertainment, leisure,restaurants and other supporting areas; a one-million-sf four-starapartment hotel; a 380,000-sf Shoppes at the Four Seasons retailshopping area and a 339,000-sf parking area.

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LVS says it plans to transfer the apartment-hotel towercomponent to a separate cooperative holding company and beginselling shares in the new holding company to third partiesinterested in acquiring vacation units at the Four Seasons PrivateResidences Macao. "The subdivision of the Four Seasons Macao Hotelwill also enable VCL to monetize the cash flow generated by theShoppes at the Four Seasons at an appropriate time in the future,"states LVS in an SEC filing Monday morning.

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LVS has plans for six casino-resort developments in addition tothe Ventian Macau on 200 acres on the Cotai Strip. It entered intothe land concession agreement in February 2007 after it was awardeda land lease concession for three parcels , including the site onwhich The Venetian Macao was built--parcel 1--and the site on whichthe Company is building a Four Seasons hotel--parcel 2.

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LVS made an initial premium payment of approximately $106.7million--towards the aggregate land premium for parcels 1, 2 and 3of approximately $323.9 million--minus a $24.2–million credit itreceived for reclamation work and other works done on the land andthe installation costs of an electrical substation. The landconcession became effective in April. In July, LVS paidapproximately $102.2 million for the balance of the land premiumpayment due on parcel 1. The company is required to make additionalland premium payments on the remaining parcels 2 and 3, and annualrent payments relating to all three parcels upon the completion ofthe corresponding resort or be payable through seven equalsemi-annual payments, bearing interest at 5% per annum, to be madeover a four-year period, whichever comes first.

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The amendment to the land concession resulted in an increase inthe annual rent payable to the Macau Government associated with theFour Seasons Macao Hotel from approximately $542,000 to $552,000.In addition, LVS was obligated to pay an additional land premium inconsideration of the changes of approximately $17.8 million.

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The company does not yet have all the necessary Macao governmentapprovals that it will need in order to develop its planned CotaiStrip developments on parcels 3, 5, 6, 7 and 8 but says it isworking toward those approvals. Here is a breakdown of what wouldoccur on those parcels. The information was taken from thecompany's annual report filed in August.

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For Parcel 3, LVS says it has signed a non-binding memorandum ofagreement with an independent developer for A 3,600-unit projectthat would include hotel rooms, serviced luxury vacation suites, acasino and a retail shopping mall. "We are currently negotiatingthe definitive agreement pursuant to which we will partner withthis developer to build a multi-hotel complex, which may include aCosmopolitan hotel," the company states in the filing. "Inaddition, we have signed a non-binding letter of intent withIntercontinental Hotels Group to manage hotels under theIntercontinental and Holiday Inn International brands, and servicedluxury vacation suites under the Intercontinental brand, on thesite."

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Parcel 5 is slated to include a three-hotel complex withapproximately 2,450 luxury and mid-scale hotel rooms, servicedluxury apartments, a casino and a retail shopping mall. "We willown the entire development and have entered into a managementagreement with Shangri-La Hotels and Resorts to manage two hotelsunder its Shangri-La and Traders brands," the company states. "Inaddition, we are negotiating with Starwood Hotels & ResortsWorldwide to manage a hotel and serviced luxury apartments underits St. Regis brand."

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Parcel 6 is intended to include a two-hotel complex withapproximately 4,000 luxury and mid-scale hotel rooms, a casino anda retail shopping mall physically connected to the mall in theShangri-La/Traders hotel podium. "We will own the entiredevelopment and are negotiating with Starwood Hotels & ResortsWorldwide to manage the hotels under its Sheraton brand," thecompany states.

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Parcels 7 and 8 would each hold a two-hotel complex withapproximately 3,000 luxury and mid-scale hotel rooms, servicedluxury vacation suites, a casino and retail shopping malls that arephysically connected. "We will own the entire development and haveentered into non-binding agreements with Hilton Hotels to manageHilton and Conrad brand hotels and serviced luxury vacation suiteson parcel 7 and Fairmont Raffles Holdings to manage Fairmont andRaffles brand hotel complexes and serviced luxury vacation suiteson parcel 8," the company states. "We are currently negotiatingdefinitive agreements with Hilton Hotels and Fairmont RafflesHoldings."

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