Packer upset over change in casino building plans
View(s):Highly perturbed Australian casino operator Crown Ltd has expressed concern and rejected a government decision to change the building plan of its mixed development at D.R. Wijewardane Mawatha in Colombo, informed sources said.
Following this refusal, the government has now asked that the development be shifted to another location on the same road, completely disrupting the project to set up the Colombo Crown Casino at the car park site in front of Lake House in Colombo Fort.
This dream project of Australian casino mogul James Packer to mainly lure high spending rich Indians and Chinese gamblers to a 36-storey integrated resort which includes a 400-room hotel with meeting, convention and gaming facilities is now in doubt, the sources said.
The government had wanted the number of floors reduced and asked the company to change the construction plan, the sources said.
These concerns were conveyed to top government officials by Crown chief executive Rowen Craigie and chief financial officer Ken Barton when they held discussions with them after inspecting the car park site, a senior official who attended their meeting told Business Times. Lake Leisure Holdings (Pvt) Ltd jointly formed by Crown Ltd of Australia and Rank Holdings owned by casino businessman Ravi Wijeratne has paid 20 per cent of the money to lease the property with the balance to be paid in three months.
The company has already spent US$ 20 million on the design of the integrated resort. The land was given on a 50-year lease along with a 12-year tax holiday. Lake Leisure was expected to invest $350 million on the project.
The Sunday Times last week exclusively reported the crown casino shift quoting Defence and Urban Development Ministry Secretary Gotabaya Rajapaksa as saying it was “strongly suggested” to Mr. Wijeratne to choose an alternative location on D.R. Wijewardene Mawatha.
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