A revised joint venture agreement has been announced between the partners in the CityCenter mega-development in Las Vegas, Nevada, US.
CityCenter is owned by CityCenter Holdings, LLC, a joint venture between MGM Mirage and Infinity World Development Corp, a subsidiary of Dubai World. They are 50/50 joint venture partners in the US$9bn (6.6bn euro, £5.9bn) property.
Under the new plan, Dubai World and MGM Mirage will fund the remaining equity contributions to CityCenter through letters of credit. In addition, CityCenter's lenders will immediately fund the full US$1.8bn senior secured credit facility.
Dubai World will also dismiss its lawsuit, filed against MGM Mirage in Delaware Chancery Court on March 22, 2009, and Dubai World and MGM MIRAGE will exchange mutual releases.
An agreement has also been reached with CityCenter's lenders on a comprehensive plan to fully fund the completion of the project, in time for its scheduled opening later this year.
“We are pleased that MGM Mirage and Dubai World, with the strong support of CityCenter's lenders, have agreed to a comprehensive plan for the financing and completion of CityCenter,” said Jim Murren, chair and CEO of MGM Mirage.
Chris O'Donnell, Dubai World's director of the CityCenter joint venture, added: "We believe CityCenter has a bright future and will benefit both the partners and the local economy, and we look forward to working with MGM management to realize that potential. CityCenter is now fully funded and on track to open in December 2009."
CityCenter's grand opening celebrations will culminate with the launch of the development's centrepiece, ARIA, on 16 December 2009. The 61-storey property will feature a 80,000sq ft (7,432sq m) ARIA spa which will include 62 treatment rooms and three spa suites. Details: citycenter.com
