September 17, 2007

Dubai World stakes claim in Las Vegas

LAS VEGAS

Dubai World is taking a stake in more casino projects on the Las Vegas Strip with partner MGM Mirage Inc., the companies said this week.

A subsidiary of Dubai World’s investment arm, Istithmar Hotels FZE, will take a 25 per cent stake in a joint venture to develop a multibillion-dollar resort on the Strip, a project MGM revealed in June with Kerzner International Holdings.

Kerzner is to lead the planning of the project at the corner of Sahara Avenue and the Las Vegas Strip.

Construction is to begin in the first half of 2009 and the property is expected to open in 2012, said Kerzner International’s chief executive, Sol Kerzner, in a statement.

Dubai World said late last month it would invest more than $5 billion in MGM Mirage for a 50 per cent stake in its $7.4 billion City Center casino mega resort on the Strip and a 9.5 per cent stake in the company.

Dubai World is a holding company for the Persian Gulf state of Dubai.

Last month, a Dubai World subsidiary signed an agreement for control of the Barneys New York department store for $942.3 million.

A division of Dubai World also spent $100 million this year to buy the QE2, the majestic ocean liner that has carried millions of people across the Atlantic during its 40-year history.

Associated Press

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