Landmarks Bhd, a full subsidiary of Malasia’s leading casino and resorts operator Genting Bhd received consent last Friday from the Indonesian authorities to undertake gaming business in Bintan Island’s Treasure Bay project, following the zoning of the enclave as an exclusive integrated tourism zone (EITZ). Treasure Bay’s new status follows an agreement between Landmarks’ 74% owned Bintan Treasure Bay Pte Ltd (BTB) and Indonesia-based PT Wisata Hiburia (PTWH) for the zoning of 3.4 million square metres of leasehold land belonging to BTB.

Landmarks Bhd’s possible venture into gaming operations in Indonesia’s Bintan Island has put its parent Genting Bhd in the spotlight, as analysts believe it would enable the latter to expand its clientele base amid a wider regional presence. The presence of a gaming unit within Landmarks’ RM4.07 billion (US$1.26 billion) mixed development in Bintan Island’s Treasure Bay enclave is also seen as a catalyst for potential upsides in the value of real estate in the integrated resort.

Landmarks told Bursa Malaysia last week that the deal also allows Landmarks to conduct other businesses, including medical tourism, besides multimedia and information technology hosting. BTB is undertaking the development of integrated resorts (IR), commercial and residential properties at Treasure Bay. The zoning fee payable by BTB to PTWH for designating the proposed development as an EITZ will be based on 10% of the net profit on the sale of the proposed IR development.

OSK Investment Bank said: “It is a good thing for Genting as it can diversify geographically, and have a bigger captive market to cross-sell its products. The inclusion of Landmark’s gaming business was positive for Genting as the resort and casino operator would have key interests in three gaming licences within Southeast Asia, one each in Malaysia, Singapore and Indonesia. According to CIMB Research, “This cements Genting’s position as the leading gaming player within the region.” (E-01.28.08)

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