MGM Mirage secures more CityCenter funds
- By Johanes Tarbut
- Published 09/2/2008
- Las Vegas , Hotels
- Unrated
Jim Murren, MGM Mirage
President said last week that the casino and hotel operator has secured another
$2.3 billion of the funds needed to complete its Las Vegas CityCenter project. However,
Murren says he’s confident MGM will get the remaining $700 million by the end
of September.
Only a few weeks ago, MGM
Mirage representatives declared that a $1.65 billion were secured from the $3
billion needed to complete the project. Several banks and even Wall Street expressed
concern over the problems MGM Mirage faced to obtain the funds to finish the project. During
MGM Mirage's second-quarter earnings conference call on August 5th,
Murren said that such comments were simply exaggerated and that there were no
delays in completing CityCenter, which is expected to be ready by 2009.
CityCenter has been labeled
as the most expensive private commercial development in the United States, the
project, which is a 50/50 venture between MGM and Dubai World, includes six towers,
a hotel and casino, residential condominiums, boutique hotels and a
500,000-square-foot shopping center, dining area and entertainment compound.
Murren also expressed that
While he expects to get the
remaining funds before the September deadline, Murren said the negotiations
with banks have focused on "a spirited debate over pricing." MGM Mirage spokesman Alan Feldman also said
the company assured a small portion of the project's construction to Tishman
Construction Corp, which according to the deal will supervise the building work
at the Harmon Hotel, one of five boutique hotels and condominiums located
inside the CityCenter.
Feldman said the deal with
Tishman will free Perini Construction, CitiCenter’s primary builder, from
handling the entire construction volume by transferring a portion of the
construction works to Tishman and some of its subcontractors.
Tishman also supervised about 800 workers at the $4.8 billion Echelon, a Boyd Gaming project that was work put on hold only a few weeks ago due a series of financial issues.
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