Dubai World & MGM Mirage In Second Joint Venture For Las Vegas Resort
Dubai World and MGM Mirage in second joint venture for Las Vegas real estate.
Istithmar Hotels FZI, subsidiary of Dubai World, Kerzner International Holdings and MGM Mirage entered into a joint venture to 40 acres of land on Sahara Avenue and the corner of Las Vegas Strip.
The commercial real estate is yet to be named and the construction for this multibillion dollar resort is planned for construction in 2009 and completion in 2012.
Three months ago a partnership between Kerzner International Holdings and MGM Mirage for a equal partnership to develop the land was announced.
Each company, Kerzner and Istithmar will contribute a total $600 million investment for and equity share of 25 percent each.
The remaining 50 percent equity partner will come from the Las Vegas gaming company MGM Mirage. The casino giant will receive $200 million in cash from the venture.
The $1.2 in equity from the partnership will finance the construction cost that will take place in 2008.
Kerzner International Holdings will design and plan the mega resort.
Five months ago MGM Mirage purchased $575 million in land from Concord Wilshire Partners and Gordon Gaming Corp. 40 acres of real estate will be allocated to be this Strip development.
This is Dubai World’s second investment with MGM Mirage. Just last month MGM Mirage approved the $2.7 billion investment by Dubai World for a equal share in Project CityCenter Las Vegas. CityCenter is a 76 acres mixed use project on the Strip.
An additional investment of $2.4 billion in MGM Mirage’s stock by Dubai World would give them 28.4 million shares.
Dubai World is looking towards the long term for their investment.
The investment group could own 9.5 percent of the giant Las Vegas gaming company.
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Dubai World and MGM Mirage in second joint venture for Las Vegas resort.