James Packer gambles on a third Macau casino Models roam the floor of last week's Global Gaming Expo Asia in Macau, where Melco Crown Entertainment is to build a $2.3bn resort. JAMES Packer's Macau casino joint venture plans to build a $US2.5 billion ($2.3bn) casino resort -- the group's third in the Chinese territory -- as it seeks to capitalise on booming gaming revenues in the region. Melco Crown Entertainment yesterday signed a $US360 million deal to gain control of the Macau Studio City project, an integrated resort project on hold since the global financial crisis and in planning for more than a decade. The company's chief executive, Lawrence Ho, said the property's theme and demographic focus would be differentiated from the company's existing Macau properties, the City of Dreams and the Altira Macau. Construction is scheduled to start early next year and it is understood the partners have no plans for an equity issue to fund the project. "We believe Macau Studio City's existing land grant and previously completed site work will allow us to significantly expedite its construction timetable," Mr Ho said yesterday. It will be Melco Crown's second project on Macau's Cotai strip, a vast stretch of reclaimed land between the islands of Taipa and Coloane that casino developers in Macau, such as Mr Ho and Mr Packer, are promoting as Asia's answer to the Las Vegas strip. City of Dreams is in Cotai. Last year, Mr Ho said Melco Crown was prepared to build more casino resort developments in Macau and elsewhere in Asia. Mr Packer's Crown holds a 33.4 per cent stake in Melco Crown. The Studio City site is one of the last quality sites available in Macau for development. It is strategically located at the Lotus Bridge immigration point, making it the very first resort that tourists encounter on entering Cotai. Before the financial crash, Melco Crown had a management arrangement with Studio City's owners to run the casino at the site, but decided to take control of the project after it became difficult for the owners to properly fund it within the prior structure. Melco Crown is believed to have codenamed the deal Project Eagle. The deal ends three years of delays caused by legal disputes between the Hong Kong and US investors. Studio City was previously owned by a joint venture between Hong Kong-listed entertainment company eSun Holdings and New Cotai Holdings, an entity controlled by funds managed by US firms Silver Point Capital and Oaktree Capital Management. New Cotai Holdings will hold a 40 per cent stake. Melco Crown will pay New Cotai $US100m in three instalments over two years. Before the financial crash, the development was to have included a specially designed 4000-seat arena, a 2300-seat theatre, Asia's first Playboy Mansion and four new hotels -- a Ritz-Carlton, a W Hotel, a Marriott and the world's first Tang Hotel. Last month, Macau gaming revenues rose 42.4 per cent to a record $US3.03bn. They were boosted by the opening of Galaxy Entertainment Group's $US2bn resort development at Cotai, which is close to the City of Dreams. "We remain bullish on Macau's prospects and believe high-quality new supply, such as Macau Studio City, will continue to drive incremental demand," Mr Ho said.