MGM MIRAGE and Kerzner International to Develop Multi-Billion Dollar Las Vegas Resort
20 Junho 2007 - 10:15AM
PR Newswire (US)
LAS VEGAS and PARADISE ISLAND, Bahamas, June 20
/PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE:MGM) and Kerzner
International Holdings Limited ("Kerzner" or "Kerzner
International") announced today that the companies have entered
into a letter of intent to form a 50/50 joint venture to develop a
multi- billion dollar integrated resort property on the Las Vegas
Strip. The parties plan to enter into immediate negotiations with a
view to concluding a definitive agreement in the third quarter of
2007. The new resort will be designed for approximately 40 of the
78 acres of land owned by MGM MIRAGE, located on the corner of Las
Vegas Boulevard and Sahara Avenue. Kerzner will lead the planning
and conceptualization of this project. The joint venture is
expected to draw upon MGM MIRAGE's substantial presence and
experience in Las Vegas and Kerzner's experience in developing and
operating some of the world's most recognized and successful
destination resorts. "We see this type of relationship as a major
part of our company's future," said Terry Lanni, Chairman and CEO
of MGM MIRAGE. "Our considerable real estate holdings, combined
with our experience and efficiencies in developing major
entertainment resort properties, are unmatched. We believe this
joint venture could well serve as a model for similar transactions
which we think could further enhance shareholder value by
accelerating growth and conserving our capital, allowing us to
pursue other growth opportunities and/or return excess capital to
our shareholders." Sol Kerzner, Chairman and CEO of Kerzner
International, observed: "We have studied the Las Vegas market for
some time and believe this is an outstanding opportunity to create
one of the most innovative and exciting destination resorts in the
world. We are delighted to join forces with MGM MIRAGE." Under the
terms of the agreement, MGM MIRAGE will provide the land for the
resort and Kerzner International and one of its financial partners
will provide cash equity, such that each party owns 50 percent of
the project. The land being contributed by MGM MIRAGE is being
valued at $20 million per acre. The new integrated resort complex
is anticipated to be a multi-billion dollar project and will be
financed through equity contributions and third-party debt
financing. The broad conceptual design direction of the new resort
has been agreed by the parties and design and planning is expected
to take approximately one year to complete. Upon completion of the
design phase, both parties anticipate a three year construction
period. The as-yet unnamed resort project may utilize existing
brands owned by either MGM MIRAGE or Kerzner International, or a
new brand will be introduced. "This is an exciting opportunity for
our company," said Jim Murren, President, CFO and Treasurer of MGM
MIRAGE. "This is a prime location in the heart of a rapidly
developing area of the Las Vegas Strip. Partnering with a highly
respected global resort operator on such a prime piece of Las Vegas
real estate will certainly result in a spectacular project. This
resort will further enhance the Las Vegas tourist experience and
drive incremental visitors to the Strip. This development will
further elevate the value of our surrounding land holdings and
assets." MGM MIRAGE (NYSE:MGM), one of the world's leading and most
respected hotel and gaming companies, 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. 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/.
KERZNER INTERNATIONAL HOLDINGS LIMITED, through its subsidiaries,
is a leading international developer and operator of destination
resorts, casinos and luxury hotels. Kerzner's flagship brand is
Atlantis, which includes Atlantis, Paradise Island, a 3,700-room
ocean-themed destination resort in The Bahamas. This unique
destination features a variety of accommodations, all built around
a 100-acre waterscape with over 20 million gallons of fresh and
saltwater lagoons, pools and habitats, the world's largest open-air
marine habitat and some of the most beautiful beaches in the world.
Kerzner is extending its Atlantis brand globally with the
development of Atlantis, The Palm, Dubai, a 1,500-room,
water-themed resort expected to open in late 2008 on The Palm,
Jumeirah. Kerzner has also commenced construction of a 600 room,
destination casino resort in Morocco that will open in 2009, which
will be operated by Kerzner under a new brand that it will be
introducing to the market. Kerzner also manages six luxury resort
hotels under the One&Only brand. The resorts, featuring some of
the top-rated properties in the world, are located in The Bahamas,
Mexico, Mauritius, the Maldives and Dubai. An additional
One&Only property is currently in the development stages in
South Africa. For more information concerning Kerzner and its
operating subsidiaries, visit kerzner.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: James J. Murren,
President, Chief Financial Officer & Treasurer +1-702-693-8877,
or Alan M. Feldman, Senior Vice President, Public Affairs,
+1-702-891-7147, , both of MGM MIRAGE; or Lauren E. Snyder, Senior
Vice President, Global Communications of Kerzner International,
+1-242-363-6018, Web site: http://www.mgmmirage.com/
http://www.kerzner.com/
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