Harrah's bidding for Singapore's gaming rights

Harrah's Entertainment Inc., one of five remaining bidders for Singapore's first casino license, will partner Taubman Centers Inc. and developer Sheldon Gordon in the retail component of its proposal in the city-state.

Taubman and Gordon will design and own a share of the mall in Harrah's Singapore bid, Taubman Asia's President Morgan Parker said in an interview Friday. He declined to disclose the investment amount.

Bloomfield Hills, Mich.-based Taubman owns or manages 23 U.S. shopping centers, while Gordon developed the Forum Shops at Caesars Palace in Las Vegas.

Taubman is also a partner with The Church of Jesus Christ of Latter-day Saints in the billion-dollar development of new malls on downtown Salt Lake City's Main Street.

The Singapore-project partnership announcement is the third within a week for Las Vegas-based Harrah's, the world's biggest casino-operator by sales, as competition for Singapore's gaming resort heats up after the government released bidding rules last month. At stake is an estimated $1 billion of gaming revenue in the first year of operation, according to Merrill Lynch estimates, on an investment that's expected to reach $3 billion.

"At this point, it's going to be a very tight race, and having strong partnerships is definitely important," said Pratik Burman Ray, an analyst at UOB-Kay Hian Research Pte. "We are slightly tilting toward Harrah's with their strong partnerships because the Singapore government's so focused on drawing in tourists."

He has a "buy" recommendation on Keppel Land Ltd., Singapore's third-largest developer by assets, which has a 30 percent stake in Harrah's Singapore bid.

Keppel Land's shares were unchanged at S$3.78 at 9:05 a.m. Singapore time. The stock has risen 68 percent this year, making it the fourth-best performing stock on the Singapore benchmark Straits Times Index.

Singapore lifted its ban on casinos in April after the government said the city-state's share of Asia Pacific's tourism fell. Singapore, which had three recessions in six years, is trying to boost visitor arrivals to lift the contribution of tourism from 3 percent of the economy.

The city-state last week reiterated its goal for the number of visitors to double to 17 million in 10 years and the amount they spend to triple to S$30 billion ($18 billion). An offshore site for a second casino-resort will be sold after the government names the winning bidder for the downtown location.