New Wave of Chinese Real Estate Investment Pushing $1.2B Casino in the South Pacific

Analysts in New York, Sydney and London are already talking about how a surge in core real estate values will drive new waves of Chinese investment into emerging markets, and now mainland capital is said to be building a $1.2 billion casino on the tiny Pacific island of Tinian.

Little-known Macau, Shanghai and Singapore-based investment firm Alter City Group has reportedly teamed up with CSCEC (China State Construction Engineering Corporation) the mainland’s biggest builder, to propose a 300,000 square metre integrated resort on the island in the south Pacific’s Marianas chain, just south of Saipan.

Although tiny Tinian is not even 15 percent the size of Shanghai in terms of area, its proximity to the mainland’s commercial centre, and its willingness to license casinos, has Alter City and CSCEC optimistic about the potential for a tropical gambling mecca, according to an account in Saipan-based publication Marianas Variety.

Alter City is proposing to build hotels, casinos, villas, 18-hole golf course, theme parks, and more on a 152-hectare site is has leased on the tropical island, although it has yet to submit a detailed plan. The Chinese group is also promising to push for direct flights from the mainland. A flight from Shanghai to neighboring Saipan currently takes four and a half hours.

Airline such as China Eastern and Sichuan Airlines are already whisking Chinese tourists off to Tinian’s northern neighbor Saipan, via several flights a week. Once in Saipan, however, travellers must take a propellor plane over to Tinian on a short hop.

And, as the only island in the area that already has a casino, Tinian is hoping that some of those wealthy Chinese tourists will venture southward for some mahjong or blackjack. The smaller Micronesian island has been home to Tinian Dynasty Hotel and Casino since 1997. However, the existing gaming establishment has been struggling, with authorities accusing it of not having paid local taxes and law enforcement officials threatening to seize the hotel because of frequent violations.

Unfortunately for the Tinian-ese, Saipan could already be hijacking their wave. In August last year a Hong Kong-listed firm was granted a 25-year licence to build and operate a casino on Saipan and is planning a 4,200 room palace.