Dubai World may Sell CityCenter Shares
CityCenter, Las Vegas
Dubai World, who own a 50% share of CityCenter, the new complex being built in Las Vegas, may soon sell their stake, in order to clear $14.4 billion debt. Since buying the 50% stake in CityCenter in 2008 for more than $5 billion, and a further 5.9% in MGM Resorts, the price of the stock has plummeted and currently stands at some 10% of what it was in 2008. Shares of MGM Resorts International, who run a number of Las Vegas casinos including the MGM Grand, MGM Mirage and New York-New York, have traded as low as $7.60 in the last year and last night were valued at $9.14.
CityCenter is one of the latest developments to be opened on the Las Vegas Strip and features the Aria Resort and Casino, as well a number of other hotels and entertainment facilities. The complex was opened in December 2009 and its existence has been anything but peaceful since then, with Dubai World suing MGM Resorts International regarding a payment of $200 million.
It's been reported by Reuters and Bloomberg News that it would be possible for Dubai World to raise almost $20 billion over the next eight years from the selling of their assets. It’s believed that the selling of their City Center stake would be a substantial part of this, with their stake currently being valued at $1.325 billion.
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