MGM MIRAGE and Dubai World Complete CityCenter Joint Venture Transaction
15 Novembro 2007 - 6:03PM
PR Newswire (US)
LAS VEGAS, Nov. 15 /PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE:MGM)
and Dubai World today announced that they have completed their
previously announced 50/50 joint venture transaction in the
landmark CityCenter development in Las Vegas. MGM MIRAGE
contributed the CityCenter assets which the parties had mutually
valued at $5.4 billion, and received 50 percent of the equity in
CityCenter. Pursuant to the terms of the joint venture agreement,
Dubai World contributed approximately $2.96 billion for 50 percent
of the equity in CityCenter. Following the close of the joint
venture transaction, MGM MIRAGE received a cash distribution from
the joint venture of approximately $2.47 billion. The joint venture
retained approximately $490 million to fund near-term construction
costs. The joint venture will obtain project specific financing to
fund remaining project costs. The joint venture, CityCenter
Holdings LLC, is owned equally by MGM MIRAGE and Dubai World.
CityCenter Holdings LLC will own 100 percent of CityCenter, a
mixed-use luxury residential, resort and retail complex currently
being developed by MGM MIRAGE on the Las Vegas Strip. MGM MIRAGE
will continue to serve as developer of CityCenter and upon
completion, the joint venture will pay MGM MIRAGE a management fee
to operate CityCenter's resort casino as well as the development's
retail activities and the Vdara condo-hotel tower. Infinity World
will not play an active role in the management of CityCenter. "This
transaction is a seminal moment in the history of our company, just
as the development of CityCenter is a determining milestone for the
future of Las Vegas," said Terry Lanni, Chairman and CEO of MGM
MIRAGE. "The complimentary combination of assets and expertise held
by MGM MIRAGE and Dubai World creates opportunities that were
previously unavailable to us before this association was formed.
Our partnership at CityCenter represents but the first step in a
long-term relationship that will benefit our community, our company
and our shareholders." HE Sultan Ahmed Bin Sulayem, Chairman of
Dubai World said, "Our company is most pleased to be a part of what
we consider to be one of the most exciting private sector
developments in modern history. CityCenter is the most ambitious
real estate project ever undertaken in Las Vegas and rivals any
similar project around the world. Its global significance cannot be
underestimated. MGM MIRAGE has initiated a concept that will do
nothing less than redefine one of the world's most exciting cities.
Dubai World is eager to play a role in seeing CityCenter through to
its completion and into its successful operation. Together, our
companies have the ability to change the face of luxury living,
both in Las Vegas and beyond. We are very enthusiastic about the
future." Targeted for completion in late 2009, CityCenter is a
luxury urban metropolis defined by its dazzling vertical
architecture rising from the Las Vegas Strip. CityCenter's design
team includes many of the world's foremost architects such as
Daniel Libeskind, Lord Norman Foster, and Rafael Vinoly. The
self-contained city-within-a-city will include: * A dramatic Cesar
Pelli-designed 4,000-room resort and casino; * Approximately
470,000 square-feet of retail and entertainment space; * 2,650
luxury condominiums and condo-hotel units in multiple towers; and *
Two 400-room boutique hotels, one of which will be managed by
luxury hotelier Mandarin Oriental. In addition to investing in the
joint venture, Dubai World through subsidiaries has also invested
over $1.2 billion in MGM MIRAGE through the purchase of
approximately 14.5 million shares of MGM MIRAGE common stock
representing approximately 4.9 percent of the outstanding shares.
Credit Suisse Securities acted as financial advisors to Dubai
World. UBS Investment Bank served as financial advisors to MGM
MIRAGE. Paul, Hastings, Janofsky & Walker LLP acted as legal
counsel to Dubai World and Christensen, Glaser, Fink, Jacobs, Weil
& Shapiro, LLP acted as legal counsel to MGM MIRAGE. About MGM
MIRAGE: MGM MIRAGE (NYSE:MGM), one of the world's leading and most
respected development companies with significant holdings in
gaming, hospitality and entertainment, owns and operates 17
properties located in Nevada, Mississippi and Michigan, and has
investments in three other properties in Nevada, New Jersey and
Illinois. MGM MIRAGE is the largest landholder on the Las Vegas
Strip, with significant undeveloped landholdings in both Las Vegas
and Atlantic City. The Company recently opened MGM Grand Detroit, a
major new resort; and will open another, MGM Grand Macau, before
the end of the year. Major MGM Grand resorts have also been
announced in Atlantic City, NJ, and Abu Dhabi, UAE. The Company is
also developing CityCenter, a multi-billion dollar mixed-use urban
development in the heart of the Las Vegas Strip. CityCenter is a
50/50 joint venture with Dubai World. MGM MIRAGE has signed a
definitive agreement with Kerzner International Holdings Limited
and Istithmar Hotels FZE to develop a new multi-billion dollar
integrated resort property on the Las Vegas Strip. The Company has
separate agreements with the Diaoyutai State Guesthouse in Beijing
and Mubadala Development Corp. in Abu Dhabi to pursue non-gaming
business opportunities. MGM MIRAGE supports responsible gaming and
has implemented the American Gaming Association's Code of Conduct
for Responsible Gaming at its properties. MGM MIRAGE has received
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/. About Dubai World: 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. The Dubai World Group has more than
50,000 employees in over 100 cities around the globe. Dubai World's
iconic real estate projects include the Nakheel's Palm developments
and The World. The group also has extensive real estate investments
in the US, the UK and South Africa, unique hospitality destinations
in every corner of the world, and is a leading global port
operator. In the last five years, Dubai World has developed 80,000
luxury residential villas and apartments and approximately three
million square feet of retail space. Forward Looking Statements:
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, DAN D'ARRIGO, Executive Vice President and Chief
Financial Officer, +1-702-693-8895, or Media, ALAN M. FELDMAN,
Senior Vice President of Public Affairs, +1-702-650-6947, , both of
MGM MIRAGE Web site: http://www.mgmmirage.com/
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