MGM, Dubai World Sell Las Vegas Mall for $1.1 Billion
18 Março 2016 - 1:40PM
Dow Jones News
MGM Resorts International and Dubai World's Infinity World
Development Corp. will sell a Las Vegas luxury shopping center to
mall operator Simon Property Group Inc. and Invesco Ltd. for about
$1.1 billion, the latest payoff on a bet to remake the Las Vegas
Strip.
The 324,000 -square-foot luxury shopping center, called The
Shops at Crystals, is part of the giant CityCenter project which
opened on the Las Vegas Strip in 2009, with hotels, condominium
towers and the mall.
The $8.5 billion CityCenter project, which at the time was the
largest privately funded construction project in U.S. history,
faced a ballooning budget and construction problems and the huge
investment lead MGM to hire bankruptcy attorneys after the real
estate bubble burst.
The project eventually turned around and the co-owners each got
a $200 million dividend last spring.
Crystals features luxury stores, including Louis Vuitton and
Gucci, as well as a tram station. The companies said it has close
to about 16,000 hotel rooms.
Las Vegas has also improved since the recession, marking a
record number of visitors last year and they now spend more than
half of their travel budgets on nongaming expenses.
MGM Resorts shares rose 3.4% and Invesco shares rose 1.2%, while
Simon shares fell 0.4% in morning trading.
Last February, MGM said it was looking at ways to return value
to the CityCenter owners "whether that be through sale of some
parts of CityCenter or through dividends or through
recapitalization."
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
March 18, 2016 12:25 ET (16:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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