Project CityCenter and MGM MIRAGE Has $5 Billion Invested By Dubai World
Project CityCenter and MGM Mirage Las Vegas has $5.1 billion invested by Dubai World. The real estate developer of the World and Palm developments off the coast of Dubai agreed to purchase a 50 percent ownership in 9.5 percent of MGM Mirage common stock, which would cost $2.4 billion, and 50 percent in Project CityCenter real estate for $2.7 billion.
CityCenter Las Vegas is expected to finish in the last quarter of 2009. The mega resort will contain 2,650 luxury condos in several towers, a 4,000 room resort casino, 470,000 square feet of entertainment and retail space and two 400 room non gaming luxury hotels.
The partnership will create a 50 – 50 joint venture called CityCenter Holdings LLC, owning 100 percent of CityCenter commercial real estate.
Dubai World will purchase 14.2 million shares of stock at a $84 per share price. They will then purchase another 14.2 million shares at the same price from MGM Mirage.
The stock purchase is expected to happen next week along with the sale at the same time. The huge real estate joint venture deal is expected to close by the end of 2007.
MGM Mirage, major shareholder Kirk Kirkorian, will continue to be real estate developer of Project CityCenter Las Vegas and upon completion, will receive a continued management fee from the JV to operate the development’s retail activities, Vdara condo hotel and the resort casino.
Dubai World has been seeking international business expansion. MGM has agree due to their similar large scale developments and its assets, brands and locations.
MGM MIRAGE financial advisor was UBS Investment Bank. The financial advisors to Dubai World were Credit Suisse Securities. The legal counsel to MGM MIRAGE was Christensen, Glaser, Fink, Jacobs, Weil & Shapiro, LLP and counsel to Dubai World was Paul, Hastings, Janofsky & Walker LLP.
MGM Mirage operates and owns 17 properties Mississippi, Nevada and Michigan. Other major new developments under construction by the company includes Michigan, Nevada and Macau.
Dubai World investment portolia includes Nakheel, Jafza, Dubai Drydocks, DP World, Barney’s, Island Global Yachting, Istithmar, Maritime City, Tejari, Inchcape Shipping Services, One & Only, Atlantis, Kerzner, Technopark, Tamweel and Limitless. Real estate projects include Nakheel’s Palm and World developments and real estate investments in the UK, South Africa and the US. Source: GlobeSt
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Project CityCenter and MGM MIRAGE has $5 billion invested by Dubai World.