Wednesday, August 22, 2007

Persian Gulf Group Investing $5 Billion With MGM

LAS VEGAS, Nev. -- MGM Mirage is pursuing a long-term strategic partnership with the investment holding company Dubai World, including a joint venture for CityCenter.
The deal involves a roughly $5 billion investment from the Persian Gulf holding company, according to MGM officials. That includes $2.7 billion for the sprawling CityCenter hotel project in Las Vegas and up to $2.4 billion in purchases of MGM Mirage common stock.
The deal will give Dubai World a minority stake in MGM and will also give it a 50 percent equity in CityCenter, with MGM retaining the rest. MGM also has the opportunity to receive an additional $100 million from Dubai if it completes the project on time and on budget.

MGM will remain CityCenter's developer and will be paid an unspecified management fee by the joint venture to operate the development's casino, retail space and condo-hotel tower. CityCenter site on 76 acres on the Las Vegas Strip. It is slated for completion by 2009.

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