Search
 

Dubai World Placing $5B in CityCenter, MGM Mirage

LAS VEGAS-The developer of the Palm and World developments off the coast of Dubai will acquire a 50% stake in the CityCenter project here and up to 9.5% of MGM Mirage common stock.

By Brian K. Miller | Updated on August 22, 2007

LAS VEGAS-Dubai World is investing upward of $5 billion in MGM Mirage Inc. and its massive CityCenter development on the Las Vegas Strip. The developer of the Palm and World developments off the coast of Dubai has agreed to acquire a 50% stake in CityCenter for $2.7 billion and up to 9.5% of MGM Mirage common stock at $84 per share, which would total $2.4 billion.

To effect the CityCenter deal, the two companies will form a 50-50 joint venture, CityCenter Holdings LLC, which will own 100% of CityCenter. Targeted for completion in late 2009, the project includes a 4,000-room resort casino, 2,650 condominiums in multiple towers, two 400-room non-gaming hotels and 470,000 sf of retail and entertainment space. MGM will receive an extra $100 million from Dubai World if the project is completed on schedule and on budget.

To gain its stake in MGM Mirage Inc., Dubai World will make a public tender offer for 14.2 million shares at $84 per share, a 13% premium over yesterday’s closing share price, and will acquire an additional 14.2 million shares directly from MGM Mirage at the same price.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.