MGM Mirage, Others Creating Multi-Billion Dollar Resort

If you're planning ahead--about five years ahead, that is--look for an incredible new project at the corner of the Strip and Sahara Avenue. MGM MIRAGE, Kerzner International Holdings Limited (best known for its Atlantis Paradise Island resort in the Bahamas) and Istithmar Hotels FZE have announced that the companies will develop a multi-billion dollar integrated resort property on the Las Vegas Strip.

Under the terms of the agreement, MGM MIRAGE will provide the land for the resort and Kerzner and Istithmar will provide cash equity. MGM MIRAGE, Kerzner and Istithmar will own 50 percent, 25 percent, and 25 percent, respectively of the newly formed joint venture.

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. 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.

Sol Kerzner, Chairman and CEO of Kerzner International, observed: "We are excited to be partnering with MGM and Istithmar to create one of the most exciting integrated resort destinations in the world on the Las Vegas Strip. I expect that construction will commence in the first half of 2009 and that we will open in 2012."

Photo courtesy PRNewsWire