Wednesday, November 10, 2004
MGM Mirage plans $4bn Las Vegas ‘metropolis’By Amy Yee in New YorkPublished: November 10 2004 16:14 Last updated: November 10 2004 16:14
MGM Mirage, owner of the Bellagio and MGM Grand casinos, on Wednesday unveiled a $4bn plan to build a 66-acre “urban metropolis” that will introduce a residential area to the Las Vegas strip.
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The new site, called Project CityCenter, will match the combined size of Times Square, SoHo and Rockefeller Center in New York.
The new complex will consist of a 4,000-room hotel and casino as well as three boutique hotels, 1,650 condominiums and a sprawling shopping, dining and entertainment space.
Wynn Resorts also announced a $900m expansion to its new Wynn Las Vegas casino.
The news reflects booming real estate prices and the success of Las Vegas in becoming the top tourist destination in the US. The city has announced plans to revitalise its downtown while the University of Nevada Las Vegas plans to develop surrounding neighbourhoods into a new “midtown”.
The latest development follows a spate of acquisitions in the gaming industry. MGM Mirage this June agreed to buy Mandalay Bay Resorts in a deal worth nearly $8bn.
The deal, expected to close early next year, will make MGM Mirage the world’s second-largest gaming company behind Harrah’s Entertainment, which agreed to buy Caesars for $9.5bn in July.
Jim Murren, MGM Mirage chief financial officer, said, “As real estate prices continue to soar on the Strip, we intend to maximise the economic value of this land by making this development the newest icon for Las Vegas.”
The company, which is also planning significant investment in the UK following the anticipated overhaul of gaming legislation, did not give details on how it would finance development. But Mr Murren added: “Through the proceeds generated from residential sales as well as the equity contributions of our partners, we expect to rapidly de-leverage while providing significant new high-margin income streams.”
Wynn Resorts on Monday evening announced plans for a $900m expansion of its $2.7bn Wynn Las Vegas complex, which is scheduled to open next April. The new 20-acre development, tentatively called Encore at Wynn Las Vegas, is expected to open in 2007 and may include a 1,500 suite hotel, additional casino, spa, retail and convention space.
The company expects the project to be funded by new debt or equity financing.
Shares in MGM Mirage edged up 1 per cent to $60.31 in midday trade. Shares in Wynn Resorts rose 2 per cent to $62.20.
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MGM Mirage, owner of the Bellagio and MGM Grand casinos, on Wednesday unveiled a $4bn plan to build a 66-acre “urban metropolis” that will introduce a residential area to the Las Vegas strip.
//
The new site, called Project CityCenter, will match the combined size of Times Square, SoHo and Rockefeller Center in New York.
The new complex will consist of a 4,000-room hotel and casino as well as three boutique hotels, 1,650 condominiums and a sprawling shopping, dining and entertainment space.
Wynn Resorts also announced a $900m expansion to its new Wynn Las Vegas casino.
The news reflects booming real estate prices and the success of Las Vegas in becoming the top tourist destination in the US. The city has announced plans to revitalise its downtown while the University of Nevada Las Vegas plans to develop surrounding neighbourhoods into a new “midtown”.
The latest development follows a spate of acquisitions in the gaming industry. MGM Mirage this June agreed to buy Mandalay Bay Resorts in a deal worth nearly $8bn.
The deal, expected to close early next year, will make MGM Mirage the world’s second-largest gaming company behind Harrah’s Entertainment, which agreed to buy Caesars for $9.5bn in July.
Jim Murren, MGM Mirage chief financial officer, said, “As real estate prices continue to soar on the Strip, we intend to maximise the economic value of this land by making this development the newest icon for Las Vegas.”
The company, which is also planning significant investment in the UK following the anticipated overhaul of gaming legislation, did not give details on how it would finance development. But Mr Murren added: “Through the proceeds generated from residential sales as well as the equity contributions of our partners, we expect to rapidly de-leverage while providing significant new high-margin income streams.”
Wynn Resorts on Monday evening announced plans for a $900m expansion of its $2.7bn Wynn Las Vegas complex, which is scheduled to open next April. The new 20-acre development, tentatively called Encore at Wynn Las Vegas, is expected to open in 2007 and may include a 1,500 suite hotel, additional casino, spa, retail and convention space.
The company expects the project to be funded by new debt or equity financing.
Shares in MGM Mirage edged up 1 per cent to $60.31 in midday trade. Shares in Wynn Resorts rose 2 per cent to $62.20.
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