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NEWS 12/15/08
MGM MIRAGE Sells Treasure Island to Phil Ruffin
MGM MIRAGE struck a deal with Phil Ruffin for $775 million
for Treasure Island. Ruffin (former owner of the New
Frontier) is cash-fat after the $1.24-billion sale of the
New Frontier to Elad in 2007.
This will shore-up the funding for CityCenter which
is
rumored to have financial issues.
The deal should close in the middle of 2009.
This also breaks up the sisters (Mirage and Treasure Island)
which were both built by Steve Wynn on the same property.
Currently, there is a small tram, linking
the two resorts (I wonder how long that will last). In
giving up the TI, MGM MIRAGE looses a 17.5-acer lot at the
corner of the Strip and Sands Ave. shared by Fashion Show
Mall, Wynn, and Palazzo.
It will be interesting to see what (if anything) Ruffin does
with TI. He was hell-bent on bringing "real jazz" to the
Strip when he announced the (now failed) plans for
Montreux,
it would be nice if those plans translate to TI - we'll see.
NEWS
8/22/07 Dubai World buys a piece of the
Lion
Today, Dubai World (a major investment holding company), has invested
about $5.2 billion in MGM MIRAGE. $2.7 billion of
the total was invested in
CityCenter, which gives them a 50/50 joint venture in
that project. They also purchased $2.7 billion in MGM MIRAGE common stock,
giving them a 9.5%
equity stake.
This could mean many more, better,
and bigger projects for MGM MIRAGE in Las Vegas and
elsewhere. This opens many doors for MGM MIRAGE.
Read
the press release here
NEWS
6/20/07 MGM MIRAGE and Kerzner
International to Develop New Resort
MGM MIRAGE is entering
into a 50/50 deal with Kerzner International to
build a major resort on 40 of its 78 newly acquired,
undeveloped acres on the north end of the Las Vegas
strip. The land used will be the new 25.8 acres and
about 14 acres of the existing RV park.
Kerzner International
developed the amazing
Atlantis resort in
the Bahamas and will be the imagineers of this
project. They are promising something wonderful for
the site.
The planning of the
proposed resort is expected to take one year with
three years of construction after that. They expect
a late 2011 opening.
NEWS 6/20/07
Kirk Kerkorian Backing-Out of Proposal
MGM MIRAGE announced
that Kirk Kerkorian, had dropped his bid of 5/24/07
to purchase the Bellagio and CityCenter project and
take it private. The announcement of 5/24 caused MGM
MIRAGE stock to skyrocket.
NEWS 5/24/07 Kirk Kerkorian
Wants to Take
CityCenter and Bellagio Private
Kirk Kerkorian; visionary, philanthropist,
father of the mega-resort, and owner of 56.3% of MGM
MIRAGE, wants to clip
CityCenter and Bellagio from
the MGM MIRAGE collection and take the two
properties private.
There have been many
theories as to why the 90-year old Kerkorian wants
to do this. Stay tuned for further developments.
NEWS 4/27/07 MGM MIRAGE to invest in a 50% stake of
Marnell's
M Resort
NEWS
4/19/07 MGM MIRAGE Purchases Two
Parcels
$444 million for
"The Big Lot" (the long vacant
25.8 acres across the
strip from the Sahara) from Gordon Gaming Corp. (the
current owners of the Sahara).
$131 million for a
7.6 acre parcel from Concord Wilshire Partners, who
were planning the Maxim Resort for that land.
Together with Circus
Circus and its land, MGM MIRAGE now has 101.84 acres
of contiguous land anchoring the north end of the
strip. This surrounds
Hilton Vacation and
Sky. The
Travelodge is the only possible
NIMBY (hold-out)
which I'm sure they're after.
MGM MIRAGE will be
working on a master plan for the site and reports
say they will
keep Circus Circus (although it will be thoroughly
renovated). The plans for the remaining 78 acres
(which include the doomed RV park) may be something
on the scale and scope of
CityCenter.
My two cents:
This will be a very interesting project. With
building height restrictions looser on the north
strip (like the slots are, for now), I expect a
tall project. Something the
Stratosphere will need
to get on its toes to see over. I am curious to see
how they will make this project look good,
considering the vastly different architecture styles
of the adjacent
Sky and
Hilton
Vacation projects, around which this will
be built.
The Travelodge land will most
likely be absorbed into the overall plan.
I also foresee that only some of
Circus Circus will be saved. I doubt they will keep
it a low-roller joint, considering all the high-end
resorts that are being built in that area.
Perhaps an upscale Cirque theme will make CC the
entertainment neighborhood of the overall plan. I
could see expanding the Adventure Dome and adding
yet another Cirque show. The older rooms towers will
surely go, as their infrastructures are aging and the
rooms are small. Now we wait and see.
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