With the downturn of the economy, MGM Mirage has been putting on a brave front regarding CityCenter. Months ago a “construction defect” caused them to scrap the Harmon condos…..sure it did. I’m sure there were some savings in construction costs that were purely incidental. Earlier they were in talks with Deutsche Bank about providing some additional financing for CityCenter.
Then there were rumors of talks with Australian gambling company Crown Ltd, who recently bought the Cannery on Boulder Highway. Earlier this week, investment discussions between Colony Capital LLC a real estate private equity firm and MGM were terminated.
Now MGM Mirage is having a dispute with their development partner, Dubai World. Dubai World had sued MGM Mirage over the CityCenter project. However, Dubai World has put forth a proposal that calls for Dubai World, MGM Mirage and bank lenders to commit to the $3 billion needed to finish CityCenter. WIth revenues down and difficulty obtaining credit, this may be CityCenter’s best bet.
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