Late billionaire investor Kirk Kerkorian’s Tracinda Corporation is moving its headquarters from Los Angeles to Las Vegas, where its largest asset, MGM Resorts International, is based.
Tracinda is opening a four-person office located south of McCarran International Airport in Las Vegas to be closer to MGM Resorts International, which Kerkorian founded in the 1990s.
Two Tracinda executives, Daniel Taylor and Tony Mandekic, are members of MGM Resorts’ board of directors, and Tracinda owns more than 16 percent of MGM Resorts.
Kerkorian died at age 98 on June 16, and he wanted Tracinda to divest itself of MGM Resorts International holdings after his death, but Tracinda executives say that won’t happen anytime soon. They say Tracinda has a long-term investment in the casino giant.
The move signifies Tracinda’s support of MGM Resorts International and will help MGM Resorts to grow and success, MGM Resorts International Chairman and CEO Jim Murren said.
MGM Resorts International is renovating and expanding its properties in Las Vegas, including construction of the $350 million Las Vegas Arena, which is scheduled to open in April and might become home to an NHL franchise.
MGM also plans a $154 million expansion of the Aria Convention Center and recently completed an expansion of its convention center at the Mandalay Bay casino.
MGM Resorts International recently announced it wants to create a real estate investment trust (REIT) to generate more capital to support its operations in the United States and Macau.
MGM plans to take advantage of what some call a “loophole” by allowing large companies with multiple properties, such as casino companies and hotel chains, to create an investment trust to generate investment and raise capital, while maintaining an overwhelming controlling ownership.
Mandekic said Tracinda supports the REIT proposal, which he said would generate financial benefits within a year, and MGM Resorts International’s expansion efforts in Maryland, Massachusetts, and Macau.
But some lawmakers are looking to close the loophole, saying it was created by lobbyists paid by special interests to amend enabling legislation just enough to create the real estate investment trust loophole.
They say the loophole never was intended and should be eliminated as soon as possible, but they face stiff challenges from other lawmakers.
