MGM MIRAGE Secures Additional Land on North Strip
19 Abril 2007 - 10:00PM
PR Newswire (US)
Strip Frontage Parcels Adjacent to Existing Land Holdings Create
Prime 78-Acre Tract for Future Development LAS VEGAS, April 19
/PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE:MGM) today announced
that is has entered into agreements with two landowners to purchase
several parcels of land located on the Las Vegas Strip, which,
combined with existing holdings, will give the company a new,
78-acre site for future development. The newly acquired real estate
was purchased in two separate transactions from two separate
landowners. The company has agreed to purchase a 26-acre parcel
located at the southwest corner of Las Vegas Boulevard North and
Sahara Avenue from Gordon Gaming Corporation for approximately $444
million, and has separately agreed to purchase several parcels,
totaling approximately eight acres, from Concord Wilshire
Acquisitions for a price of approximately $131 million. Both
transactions reflect a purchase price of approximately $17 million
per acre. Both transactions are expected to close in May. "This new
land provides us with a much-improved position to develop our
existing North Strip holdings," said Terry Lanni, MGM MIRAGE
Chairman and CEO. "These transactions secure critical Strip access,
which will greatly increase the development possibilities for the
44 existing acres in our portfolio. We see this as an opportunity
to not only harness the power of our portfolio, but also as a means
to expand and enhance the operations of our valuable Circus Circus
property for years to come." Both purchases include critical Strip
frontage property, creating entirely new development opportunities
for the company's holdings near Sahara Avenue and the Strip.
Today's announcement adds to the position of MGM MIRAGE as the
largest landholder on the Las Vegas Strip. The company now controls
some 865 acres of Strip property, encompassing an incomparable
16,000 linear feet, just more than 3 miles, of Strip-front
property. "These new additions to the MGM MIRAGE real estate
portfolio create many new possibilities which we believe will
ultimately lead to a much greater return from under-utilized
holdings adjacent to this new acreage," said Jim Murren, MGM MIRAGE
President and CFO. "We have received significant interest by third
parties wishing to partner with MGM MIRAGE on Las Vegas
development. We believe this property is ideally suited to
exploring the opportunity to master plan with partners a major
integrated resort destination." Mr. Murren also reiterated the
company's commitment to Circus Circus and its operations. "We are
proud of our Circus Circus operation there and are excited about
this opportunity to, over time, generate additional traffic to that
portion of the Strip." Al Hummel, CEO of Gordon Gaming noted, "We
are very pleased to sell our property to a fine organization like
MGM, knowing that any ultimate development will be fully in keeping
with the Bennett family legacy. We would like to especially thank
Northern Trust for overseeing this transaction on behalf of the
Bennett family. "Also we would like to acknowledge and thank our
advisors who assisted with the transaction. SG Americas Securities,
LLC acted as Exclusive Financial Advisor and Joint Transaction
Advisor, along with CB Richard Ellis' Global Gaming Group (Las
Vegas). Gordon Gaming was represented primarily by Latham &
Watkins, LLP (Orange County and San Diego) and Brownstein Hyatt
Farber Schreck, P.C. (Las Vegas)," Mr. Hummel said. MGM MIRAGE
holdings on the North Strip include 44 acres located north of
Circus Circus Drive, along Industrial Road, where the Circus Circus
Manor and KOA Circusland RV Park are currently located. These new
acquisitions give the company a contiguous 78-acre parcel, adjacent
to the 24-acre Circus Circus Las Vegas site, on which to plan
future development. Long-term master planning for the land will now
begin, with expectations the company will identify one or more
development partners with whom it will seek to further its
reputation as the premier developer in the industry. MGM MIRAGE
(NYSE:MGM), one of the world's leading and most respected hotel and
gaming companies, owns and operates 19 properties located in
Nevada, Mississippi and Michigan, and has investments in three
other properties in Nevada, New Jersey and Illinois. The Company
has entered into an agreement to sell its Colorado Belle and
Edgewater properties located in Laughlin, Nevada. In addition, the
Company has major new developments under construction in Nevada,
Michigan and Macau S.A.R. CityCenter is a multi-billion dollar
mixed-use urban development in the heart of the Las Vegas Strip; a
new MGM Grand hotel and casino complex is being built in downtown
Detroit; and the Company has a 50% interest in MGM Grand Macau, a
hotel-casino resort currently under construction in Macau S.A.R.
MGM MIRAGE supports responsible gaming and has implemented the
American Gaming Association's Code of Conduct for Responsible
Gaming at its properties. MGM MIRAGE also has been the recipient of
numerous awards and recognitions for its industry-leading Diversity
Initiative and its community philanthropy programs. For more
information about MGM MIRAGE, please visit the company's website at
http://www.mgmmirage.com/. Statements in this release which are not
historical facts are "forward looking" statements and "safe harbor
statements" Under the Private Securities Litigation Reform Act of
1995 that involve risks and/or uncertainties, including risks
and/or uncertainties as described in the company's public filings
with the Securities and Exchange Commission. DATASOURCE: MGM MIRAGE
CONTACT: Investment Community, James J. Murren, President, Chief
Financial Officer & Treasurer, +1-702-693-8877, or Media, Alan
M. Feldman, Senior Vice President Public Affairs, +1-702-891-7147,
both of MGM MIRAGE Web site: http://www.mgmmirage.com/
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