Is the pre-eminent Malaysian hotel and gaming company Genting Bhd working out a deal with the MGM Mirage in Las Vegas? Reports out of Asia indicate that Genting’s Resorts World Bhd bought $100 million of MGM Mirage debt. This debt had been sold as part of the MGM Mirage balance sheet restructuring.
There are more questions than answers right now: How will this impact the MGM Macau casino’s? With the current MGM partner – Pansy Ho – being deemed unsuitable because of possible organized crime connections, is this move designed to bring in a party that the Nevada regulators would approve? What would the direct effect be on the MGM Mirage’ Las Vegas business ventures including the MGM Hotel and Casino and City Center?
Stay pointed to Las Vegas Backstage Access for the latest developments.
It’s a real downer for Asian’s in Las Vegas. The vision of Andrew Lai for over seven years was to build an Asian-themed hotel-casino in Las Vegas.
The hopes of having two towers with a combined 3,400 rooms, a 70,000-square-foot casino, 500,000 square feet of retail space, and employ 6,000 to 8,000 workers, are now dashed on the rocks- literally.
Lai and a group of investors planned to build the 28-story Dragon City hotel/resort on 22 acres near Spring Mountain and Wynn Roads in Las Vegas.
Instead they’re being forced to auction off the dirt just to try to pay the bills.
The gaming zoned site that is arguably the largest singe asset ever sold at an open outcry real estate auction, is being placed on the block at MGM Grand on May 16 by Spring Mountain Wynn Investments LLC, with an opening bid of $27.5 million, or $1.25 million per acre. Bidders will need a $1 million deposit before bidding.
The property is appraised for $174 million, or $7.9 million per acre, but a high sale price seems unlikely given the sour real estate market and continuing credit crunch.