Crown Sydney Hotel Resort remains on track after $450 million bank finance

Construction of the Crown Sydney Hotel Resort remains on track after a $450 million project finance facility was announced by Crown Group today.

The finance facility, agreed with three relationship banks, will "support the continuation of the construction", Crown told shareholders this morning, adding that the facility remains subject to final approvals and documentation.

Crown Resorts have also entered into new bilateral facilities with relationship banks for a further $560 million, taking their additional debt funding to over $1 billion.

The Barangaroo project is still on target to be completed by the end of the year, with 1,300 people employed on the construction.

Crown Resorts expect to recruit over 2,000 employees to work in the hotel.

The project costs remain unchanged, with the gross project cost expected to be around $2.2 billion and the net project cost around $1.4 billion.

“We would [also] like to acknowledge the tremendous support we have received from our relationship lenders, with financing in place or terms agreed for over $1 billion in additional debt funding which should enable us to weather the storm caused by the COVID-19 pandemic.

“We will continue with the construction of Crown Sydney which remains on track for completion progressively from the end of this year, absent any further impact relating to COVID-19."

As a response to COVID-19, Crown have had to let go of around 95 per cent of its workforce, some 11,500 employees, following the March 23 cessation of gamin activiies and other non-essential services at Crown Melbourne and Crown Perth.

Crown boss Ken Barton, who has taken a 20 per cent paycut, as have a number of other senior management, thanked the lenders for their support.