Taubman says tight credit stalls Macau financing

By Ilaina Jonas

NEW YORK, July 25 (Reuters) - Tighter credit conditions have delayed financing for a massive casino, hotel and retail project planned for the Chinese territory of Macau, the head of project partner Taubman Centers TCO.N said on Friday.

The $1.3 billion in financing was to have been completed by now. "Given the current capital market conditions, it has taken much longer," Taubman Chairman and CEO Robert Taubman said.

"The credit markets are just terrible," he said in a conference call with analysts a day after the upscale mall owner and operator reported a fall in second-quarter earnings.

Taubman also cut its forecast for the full year, in part because of costs related to the project in Macau.

The company, based in Bloomfield Hills, Michigan, has partnered with Hong Kong-based eSun Holdings Ltd (0571.HK: Quote, Profile, Research, Stock Buzz) for the retail portion of Macao Studio City, a casino, hotel, retail and entertainment center.

Plans call for Taubman to acquire a 25 percent interest in The Mall at Studio City and ultimately invest $200 million.

The venture also involves Hong Kong's Lai Sun Development (0488.HK: Quote, Profile, Research, Stock Buzz) and Singapore's CapitaLand (CATL.SI: Quote, Profile, Research, Stock Buzz).

"All parties are participating in a 24/7 effort to complete the financing and move forward on the project," Taubman said.