Contact us | +971 4 3635663
Sponsored by   Mudabala
Middle East Business Information
 
Loading Loading ...
Sat, 04 Jul 2009 | 23:24 GMT

Dubai World alters its Las Vegas plans

Emirates Business 24/7
 
Text Size  
 
08 January 2009
Las Vegas-based CityCenter Holdings, a joint venture between MGM Mirage and Dubai WorldDubai WorldLoading... subsidiary Infinity World, yesterday said it has cancelled the residential component of its CityCenter complex.

It also postponed the opening of The Harmon Hotel and Spa to late 2010.

With the cancellation of The Harmon residential component, the company now anticipates cost savings of $600 million (Dh2.2 billion), it said in a statement.

By postponing The Harmon Hotel by a year, it will defer $200m in construction costs to complete the interior fit-out of The Harmon, it said. "We have full confidence in the long-term future of the Las Vegas market and the success of CityCenter," Chris O'Donnell, Chief Executive Officer of Infinity World Development Corporation, said in the statement.

"This is an appropriate action in the current circumstances," he said.

In October 2008, CityCenter secured a $1.8bn senior bank credit facility, which can be increased to $3bn.

"Both sponsors continue to actively pursue additional financing for the project," the statement said.

CityCenter Holdings is developing a 67-acre vertical city on the Las Vegas Strip.

The Harmon Hotel will feature about 400 rooms and suites. The Harmon would have had about 200 residential units, of which 88 are under contract to be sold.

Purchasers will be entitled to receive refunds of their deposits, but will be given the opportunity to purchase units at the Residences at Mandarin Oriental Las Vegas, Vdara and Veer Towers, the statement said.

"By cancelling The Harmon condominium component, we will be able to avoid the need for substantial redesign resulting from contractor construction errors," said Robert Baldwin, President and CEO of CityCenter.

All other components of CityCenter including Aria Resort and Casino, The Mandarin Oriental Hotel and Residences, Veer Towers, Crystals retail and entertainment complex, and Vdara hotel-condominium tower - will open on schedule in December, the statement said.

"These scope changes received overwhelming support from our CityCenter bank group," said Dan D'Arrigo, Executive Vice-President and CFO of MGM Mirage. "CityCenter has two supportive sponsors who are fully committed to this project. We will continue to seek financing that is in the best interest of CityCenter as well as its sponsors."

By Staff Writer

© Emirates Business 24/7 2009

 
 
 
Community Comments (0) - Comment on this article
The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.
 
 
 
Loading ...
 
close x
Report Abuse
Loading ...
 
 
Loading ...
close x
Zawya Comment Policy:
 
  1. Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
    1.1   Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
    1.2   Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
    1.3   Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
    1.4   Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
    1.5   Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
    1.6   Give the impression that they represent Zawya.
    1.7   Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
  2. The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
  3. Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
  4. By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
 
 
 
Community Buzz

Stories

 

Companies

Most viewed companies by Community in the last 24 hrs
Company Name Country Industry
Consolidated Contractors Company Overseas Construction and Design
Saudi Binladin Group Saudi Arabia Construction and Design
Emirates Aluminium Company UAE Metal Production
Abu Dhabi Investment Council UAE Investment Firms and Funds
Emirates Telecommunications Corporation UAE Telecommunications Services
Al Azizia Panda United Company Saudi Arabia General Retailers
Barwa Real Estate Company Qatar Landlords and Developers
Nissan Motor Egypt Egypt Transportation Products
Ras Girtas Power Company Qatar Electric Utilities
Saudi Electricity Company Saudi Arabia Electric Utilities
 

Projects

 

Blogs

 
 
 

 
 
 
 
 

Site is optimised for viewing at 1024 x 768 with Internet Explorer v6 and Firefox v3.0 and above.
Copyright © 2009 ABQ Zawya Ltd. All rights reserved. Please read our Membership Agreement