a $5-billion investment agreement
The rest of the $5 billion is coming in the form of a direct investment in CityCenter, MGM Mirage's massive mixed-use development under construction on the Las Vegas Strip. The investment will make MGM Mirage and DubaiWorld 50-50 partners in the $5.4-billion project. Targeted for completion in late 2009, CityCenter 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.
As part of the JV deal, MGM Mirage will continue to serve as developer of CityCenter and upon completion, will receive an ongoing management fee from the joint venture to operate the resort casino as well as the development's retail activities and the Vdara condo-hotel tower.
Dubai World chairman Sultan Bin Sulayem said the company has been seeking international expansion and that MGM was chosen due to its similar experience in large-scale developments as well as its "superior" assets, locations, and brands.
MGM Mirage owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. In addition, the Company has major new developments under construction in Nevada, Michigan and Macau S.A.R.
Dubai World is a major investment holding company with a portfolio of businesses that includes DP World, Jafza, Nakheel, Dubai Drydocks, Maritime City, Istithmar, Kerzner, One & Only, Atlantis, Barney's, Island Global Yachting, Limitless, Inchcape Shipping Services, Tejari, Technopark and Tamweel. Its real estate projects include Nakheel's Palm and World developments as well as real estate investments in the US, the UK and South Africa. The conglomerate has developed 80,000 luxury residential villas and apartments and approximately three million sf of retail space.
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