As previously announced, Melco Crown Entertainment through MCE Cotai Investments Limited ("MCE Cotai"), the 60% shareholder of SCI, has committed to invest a further US$350 million (the "MCE Follow On Commitment") of equity capital in SCI. This further investment is additional to the original equity capital commitment of the shareholders of SCI of US$800 million, of which approximately US$150 million has been funded (prior to the date of this announcement) by them. MCE Cotai has also granted an equity option to New Cotai, such that it may participate in up to 40% of the MCE Follow On Commitment. If New Cotai does not exercise its equity option in full, then MCE Cotai's equity in SCI may increase up to 67% following the investment of the MCE Follow On Commitment.
Consequently, the amount of equity capital committed by the shareholders of SCI under the shareholders agreement is more than sufficient to cover the equity capital required under the senior secured credit facilities.
Melco Crown Entertainment's share of the equity portion of the financing for Studio City is expected to be funded out of its cash and future cash flows.
Our current plan in relation to the subsequent development phase of Studio City includes an additional 5-star hotel and related facilities, retail, entertainment and gaming expansion capacity. These plans are preliminary and under review and are not currently contemplated in the aforementioned financing nor the estimated budgets for Studio City.Key Elements of the First Phase of Studio City The first phase of Studio City is expected to have a total of approximately 462,000 square meters of gross floor area. Subject to government approval, it is expected to have gaming capacity of up to 500 gaming tables and over 1,500 gaming machines. In addition, it is anticipated that the hotel will include a high rise structure accommodating self-managed 5-star hotel facilities with approximately 1,600 rooms. The total retail gross floor area will be approximately 36,000 square meters with net leasable area of approximately 22,000 square meters. The retail mall will showcase mainly lifestyle oriented retailers, a small but exclusive collection of luxury shops and signature food and beverage offerings, which we believe will create an attractive luxury and lifestyle oriented shopping experience. The multi-purpose entertainment studio and TV production pods are expected to be located within the retail mall complex. The multi-purpose entertainment studio is anticipated to have a total capacity of approximately 5,000 seats. In addition to studio facilities, Studio City is expected to feature exciting, interactive entertainment-related attractions at various locations throughout the property.