Las Vegas sports arena unveiled by Harrahs and AEG this week. A $500 million, 20,000 seat, privately financed venue will be built a block from the Las Vegas Strip. The 10 acres of land is located behind Paris and Bally’s resorts that is owned by Harrahs. The arena in Las Vegas, Nevada real estate is expected to start construction next summer after the agreed letter of intent between the two companies, and the completion of the paperwork.
Last month a similar arena was discussed by the City of Las Vegas and they chose REI Neon/Warburg Pincus developer for the 22,000 seat publicly funded sports arena in Downtown Las Vegas, NV. The Harrah’s AEG arena completion date is expected for September 2010 and built to house a National Hockey League or a National Basketball Association franchise including, special events, concerts, boxing matches, exhibitions and tournaments. In a joint venture, AEG will develop, build and manage the arena.
Harrah’s states that the privately funded arena would be built, even if there are others proposed. The financing is available for the Harrah’s AEG commercial real estate. AEG is a sports presentation and entertainment company.
Sports venues including the Staples Center, Target Center, NOKIA Theatre Times Square, The Home Depot Center and London’s O2 Arena are operated and developed by AEG. AEG LIVE, a subsidiary in Las Vegas, Nevada, manages programming for Caesars Palace Colosseum and several other indoor venues on the Strip.
Even though no team has agreed to occupy the arena, AEG officials have had discussions with an investment group interested in bringing a sports franchise to the city.
The real estate developer of the Downtown Las Vegas arena project is Real Estate Interests Group of Bloomfield Hills, Michigan. The plans for REI Group’s arena included a mixed use development. The arena is slated to be incorporated into an $8.5 billion, 85 acre mixed-use project on the West side of Main Street. REI states that the arena is an integral part to the entire plan.
The Harrah’s arena is going to compete with entertainment venues by other resorts including Caesars, MGM or Mandalay. Gaming companies including Las Vegas Sands Corp, MGM Mirage, Boyd Gaming Corp, Wynn Resorts Ltd., and others might purchase ticket packages and luxury suites to support the franchise.
The REI Group’s arena access and location makes that development different. They hope that some events, that don’t need a casino location will make them profitable. Source: Review Journal
$500 million Las Vegas 22,000 seat arena unveiled by Harrahs and AEG Entertainment.