CBRE: Concessionaire contributions to Macau’s US$2.5 billion investment fund have their pros and cons

The MOP$9 billion (US$1.1 billion) combined contribution of Macau’s six concessionaires into a new Guidance Fund being established by the Macao SAR Government could ease opex pressure going forward, according to CBRE Credit Research. However, it could also be viewed as another one-off tax – and a sizeable one – the concessionaires must pay as a cost of doing business in the world’s largest land-based gaming jurisdiction. As IAG reported last week , the concessionaire contributions will comprise almost half of the fund’s initial MOP$20 billion (US$2.5 billion) capitalization, part of a broader government initiative to accelerate Macau’s economic diversification…