November 27, 2007
Paul Hastings Represents Dubai World in its Joint-Venture Investment in MGM Mirage
New York, NY (November 27, 2007) Paul, Hastings, Janofsky & Walker LLP, a leading international law firm, announced today that the firm advised Dubai World, one of the worlds largest privately-held real estate developers in the signing of a definitive agreement to form a 50/50 joint venture in the Las Vegas CityCenter development project. The transaction closed on November 15, 2007.
MGM Mirage contributed the CityCenter assets which the parties had mutually valued at $5.4 billion, and received 50 percent of the equity in CityCenter. Pursuant to the terms of the joint venture agreement, Dubai World contributed approximately $2.96 billion for 50 percent of the equity in CityCenter. Following the close of the joint venture transaction, MGM Mirage received a cash distribution from the joint venture of approximately $2.47 billion. The joint venture retained approximately $490 million to fund near-term construction costs. The joint venture will obtain project specific financing to fund remaining project costs.
The joint venture, CityCenter Holdings LLC, is owned equally by MGM Mirage and Dubai World. CityCenter Holdings LLC will own 100 percent of CityCenter, a mixed-use luxury residential and resort complex currently being developed by MGM Mirage on the Las Vegas Strip.
MGM Mirage will continue to serve as developer of CityCenter and upon completion, the joint venture will pay MGM Mirage a management fee to operate CityCenters resort casino as well as the developments retail activities and the Vdara condo-hotel tower.
Rick Kirkbride, Phil Feder, Carl Sanchez, Rob Carlson and Charles Baker led the various teams working on the transaction.
About Dubai World: Dubai World is a major investment holding company that invests, manages and supervises a portfolio of businesses. With more than 50,000 employees in over 100 cities around the globe, Dubai World has developed 80,000 luxury residential villas and apartments and approximately three million square feet of retail space.
Paul, Hastings, Janofsky & Walker LLP, founded in 1951, is a leading international law firm with over 1,200 attorneys in 18 offices. The firm serves a diverse client base including many of the leading global financial institutions and Fortune 500 companies and offers deep capabilities in capital markets, finance and restructuring, intellectual property, international arbitration and dispute resolution, investment management, labor and employment, mergers and acquisitions, private equity, product liability, project finance, real estate, securities litigation and tax advisory services. For additional information, please visit our website at www.paulhastings.com.