Thursday, February 09, 2006

MGM MIRAGE Provides Update on Las Vegas Development Plans

MGM MIRAGE Provides Update on Las Vegas Development Plans

Approves Design and Budget for Project CityCenter;
Releases Profitability Forecast for Current Residential Program at MGM Grand
Las Vegas
LAS VEGAS, Feb. 9 /PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE:
MGM) today
announced that its Board of Directors has approved the design and budget for
Project CityCenter, the Company's previously announced urban development
project at the heart of the Las Vegas Strip. Project CityCenter will feature
approximately 2.3 million square feet of residential space; a 4,000-room
luxury hotel and casino; two 400-room, non-gaming boutique hotels; and over
470,000 square feet of retail, dining and entertainment space. The approved
design will further enhance the overall significance and profitability of
Project CityCenter, which is expected to provide owners and visitors alike a
truly unique experience.
The overall cost of Project CityCenter is estimated at approximately $7
billion, excluding preopening and land costs. After estimated proceeds of
$2.5 billion from the sale of residential units, the Company believes that the
net project cost will be approximately $4.5 billion. Project CityCenter will
be located on approximately 66 acres between Bellagio and Monte Carlo on the
Las Vegas Strip, and will be connected to these resorts via a state-of-the-art
people mover system. The Company expects to break ground in mid-2006, and
estimates that Project CityCenter will open in the fourth quarter of 2009.
The detailed design phase of the project is still under way, and the budget,
scope and timing of Project CityCenter are subject to change.
"The market for casino resorts and vertical residential space in Las Vegas
is very robust," said Terry Lanni, Chairman and Chief Executive Officer of MGM
MIRAGE. "We believe the most important aspects of successful casino resorts
and residential and retail developments are embodied within Project
CityCenter: location, brand and amenities. Our Board and management believe
that Project CityCenter will be the catalyst for a new kind of experience on
the Las Vegas Strip, and forever change the way we view Las Vegas."
Jim Murren, President, CFO and Treasurer of MGM MIRAGE noted, "Our
financing plan for Project CityCenter calls for significant residential
proceeds to supplement our available borrowing capacity and free cash flow to
efficiently fund this major development, while maintaining maximum flexibility
for other expansion initiatives. We also continue to explore potential
partnerships and other financing vehicles to ensure the most efficient use of
capital. We expect to earn cash flow returns in the mid-teens on the net
project cost, which is considerably above our cost of capital."
The Company, along with its partner Turnberry Associates, is constructing
The Signature at MGM Grand, three 576-unit towers which are designed as condo-
hotels. Towers 1 and 2 are sold out, under construction, and are expected to
be completed in the second and fourth quarters of 2006, respectively. Tower 3
is also under construction, with available units being nearly fully sold out
at prices significantly above the first two towers. The Company believes that
these sales and pricing trends will continue with the residential offerings at
Project CityCenter.
Mr. Murren added, "Our belief in the Las Vegas residential market has been
confirmed with the very strong sales at The Signature at MGM Grand, where we
expect to record our 50% share of that venture's profit on Tower 1 in the
second quarter and Tower 2 in the fourth quarter, at approximately $45 million
and $60 million, respectively. Our estimated share of profits on Tower 3 is
in excess of $100 million. We see residential development as a long-term
competitive advantage for our Company, particularly given our substantial real
estate holdings on the Las Vegas Strip, and as a key component in future
resort developments."
MGM MIRAGE (NYSE:
MGM), one of the world's leading and most respected
hotel and gaming companies, owns and operates 23 properties located in Nevada,
Mississippi and Michigan, and has investments in three other properties in
Nevada, New Jersey and Illinois. MGM MIRAGE has also announced plans to
develop Project CityCenter, a multi-billion dollar mixed-use urban development
project in the heart of Las Vegas, and has a 50 percent interest in MGM Grand
Macau, a hotel-casino resort currently under construction in Macau S.A.R. MGM
MIRAGE supports responsible gaming and has implemented the American Gaming
Association's Code of Conduct for Responsible Gaming at its properties. MGM
MIRAGE also has been the recipient of numerous awards and recognitions for its
industry-leading Diversity Initiative and its community philanthropy programs.
For more information about MGM MIRAGE, please visit the company's website at
http://www.mgmmirage.com.

Generation-Xers and the Urban Lifestyle Sweep Las Vegas Real Estate Market



With Las Vegas real estate developers constantly raising the stakes, high-rise condos are the hottest ticket in town.
Las Vegas, NV (PRWEB) February 7, 2006 -- Las Vegas is a young town. And now more than ever, residents are seeking the urban, upscale lifestyle. Lofts, live-and-work studios and (most of all) high rise condominiums are quickly becoming the most sought after
real estate in Las Vegas. Especially for young professionals. Rather than being stuck in Las Vegas traffic, they’re opting to invest in real estate right on the Las Vegas Strip.Las Vegas is famous for its attractions and amenities, so it’s easy to understand the desire to live in a condo right in the middle of it all. First class hotels, endless choices of restaurants, casinos and nightlife… they can all be within easy reach for those lucky enough to find an affordable loft or high-rise condo in Las Vegas.Choices abound for those seeking the urban Las Vegas lifestyle. One example is the Allure, at Las Vegas Boulevard and Sahara. Due for completion early next year, this development consists of two 40-storey towers. Residents will have access to pools, private cabanas and many other attractions. There are 15 floor plans to choose from, many with great views of the city.Another real estate development that’s captured the attention of the young and upwardly mobile is Club Renaissance. This 58-storey residential tower within walking distance of downtown Las Vegas will become home to 800 units. Prices start at $149,900 and each condominium will include full membership to Angel Park golf club, plus many other amenities.For those looking for the ultimate Las Vegas condo, there’s Park Towers. With prices ranging from $900,000 to $5,000,000, this development redefines “luxury”. Aside from the expected amenities like whirlpool spas, 24-hour concierge and valet parking, Park Towers boasts a Hollywood-style screening room and a climate-controlled wine cellar providing each resident a private section.With Las Vegas being the nation’s hottest real estate market, the options available are truly staggering. But the best listings often sell before they’re even advertised. To approach such a market by picking up your newspaper’s real estate listings and hopping in your car, is to set yourself up for a great deal of confusion and disappointment.