Melco Crown Entertainment, the owner of the City of Dreams resort in Macau, has paid $360m for the controlling interest in a new gaming property to be developed in the Chinese enclave.

MCE has acquired a 60 per cent stake in the developer Macau Studio City, a large-scale integrated gaming, retail and entertainment resort it will now develop in partnership with New Cotai Holdings, an entity controlled by funds managed by Silver Point Capital and Oaktree Capital Management.

As part of the agreement, MCE takes control of the Cyber One Group, the develop of Macau Studio City and New Cotai Holdings will transfer the shares of other entities that own the rights to develop and operate the casino.

Lawrence Ho, co-chairman and chief executive officer of MCE, said the acquisition provides an opportunity for the company to increase its footprint in Macau.

"We remain bullish on Macau’s prospects and believe high quality new supply, such as Macau Studio City, will continue to drive incremental demand and broaden the appeal of the market,” he said. “The property’s theme and demographic focus are designed to be clearly differentiated from our existing portfolio of assets, as well as from our competitors’ facilities in the market.”

Macau Studio City will be developed on land adjacent to Macau’s Lotus Bridge – a key stop on the planned light rail system.