Control Board recommends approval of MGM’s buyout of CityCenter

MGM Resorts International connected Wednesday took its archetypal measurement toward closing connected a $2.1 cardinal buyout of Dubai World’s 50 percent involvement successful CityCenter.

The Nevada Gaming Control Board unanimously recommended support of a transportation of Dubai World’s involvement to MGM aft a 15-minute hearing.

The Nevada Gaming Commission is expected to see last support of the woody Sept. 23. The transaction is scheduled to adjacent by the extremity of the month.

MGM wouldn’t clasp onto CityCenter for long.

In Wednesday’s hearing, institution officials outlined that they program to found 2 abstracted spot companies for the 4,000-room Aria and the nongaming Vdara hotel.

Once that is completed, some properties would beryllium sold for $3.89 cardinal to The Blackstone Group of New York, which would lease the properties backmost to MGM for $215 cardinal a year.

It’s each portion of MGM’s asset-light strategy that the institution initiated 5 years agone to maximize gross done leasing and managing resorts with existent property concern trusts.

When the transaction is completed, each properties operated by MGM successful Las Vegas volition beryllium either to The Blackstone Group oregon MGM Growth Properties, a REIT straight affiliated with the company.

Nationwide, lone 1 spot is owned straight by MGM — its hotel-casino successful Springfield, Massachusetts.

Chief Financial Officer Jonathan Halkyard told committee members the institution expects to merchantability MGM Springfield to a REIT by the extremity of the twelvemonth pending support by the Massachusetts Gaming Commission.

In a abstracted but related enactment Wednesday, the Control Board recommended support of terminating the registration of Dubai World and its Infinity World Holdings subsidiary.

In questioning from committee members, William Grounds, president and main operating serviceman of Infinity World Development Corp., said the transaction would apt beryllium the company’s farewell to the gaming industry.

Dubai World volition proceed to clasp investments successful edifice properties, but nary of them has a casino, helium said. Emerging markets successful Africa and ports besides volition go a portion of Dubai World’s portfolio.

Dubai World, which would proceed to clasp a 4.3 percent involvement successful MGM Resorts International stock, is simply a spouse successful the Fontainebleau Miami Beach resort, which erstwhile was nether information for a casino tract erstwhile the authorities of Florida was exploring the enlargement of gaming statewide.

When Dubai World was licensed arsenic co-owner of CityCenter, it was a process that hadn’t been seen earlier successful Nevada with an concern institution owned by the authorities of a overseas country, the United Arab Emirates.

Control Board Chairman Brin Gibson noted that earlier the last ballot was cast.

“I privation to convey you for honoring your commitment,” Gibson told Grounds. “It each started with a bang, licensing to a overseas country, and it turned into a monumental operation project.”

CityCenter is simply a 16.8 million-square-foot analyzable connected 76 acres that includes Aria, the 1,500-room Vdara, the 392-room Waldorf Astoria with 225 condominium units, the 674-unit Veer Towers condominium complex, and the 500,000-square-foot Crystals retail mall. CityCenter opened Dec. 16, 2009.

Contact Richard N. Velotta astatine rvelotta@reviewjournal.com oregon 702-477-3893. Follow @RickVelotta connected Twitter.