Deutsche Bank questions Crown Resorts Brisbane plans

Analysts at Deutsche Bank say Crown Resorts may struggle to convince investors it can justify a proposed integrated resort in Brisbane after bringing a major Chinese developer into the project, The Australian reported.
James Packer’s Crown said Friday it would join forces with Greenland to jointly bid for the license to redevelop the Queen’s Wharf.
Rival Echo Entertainment was better positioned to win the tender, given that it already has a casino licence in the city, the report cited Deutsche Bank as saying. Echo recently teamed up with Asian giants Chow Tai Fook and Far East Consortium to bid for the license.
“We struggle to see how Crown would be able to generate a return above its cost of capital in this relatively thin and saturated casino gambling market and we believe Echo remains better positioned to win the licence given its existing Brisbane licence,” the note said.
Queensland is planning to issue three casino licenses, two in regional areas of the state and one in Brisbane, in a hope to boost tourism revenue.