The 14-year partnership between MGM Resorts International and Dubai World that developed the CityCenter on the Las Vegas Strip is ending.
The Nevada Gaming Control Board September 8 approved the buyout of Dubai World by MGM. Dubai World is an investment arm of the government of Dubai. It provided 50 percent of the investment for the $9 billion CityCenter in 2007.
The timing was important because the country was about to be hit by the Great Recession that blew out the center of the real estate sector for several years.
In 2009 Dubai World sued over the project, protesting the management by MGM of the project. Eventually there was an agreement between MGM and Dubai World that led to emergency financing and the completion of the project.
But the scope of the CityCenter project was greatly reduced. Currently CityCenter consists of the Vdara condo-hotel and Aria Resort & Casino, along with the Waldorf Astoria Las Vegas, formerly the Mandarin Las Vegas.
Commenting on the buyout, Jonathan Halkyard, chief financial officer for MGM Resorts International told CDC Gaming Reports, “Aria and Vdara are very successful businesses, and we’re looking forward to owning 100 percent of these businesses. The partnership has been a long and very successful one, but this will make it a more simplified structure for MGM Resorts to own all of CityCenter.”
