Jun 19 2013
AEG and MGM Resorts International have completed and executed transactional agreements formalizing the details of the previously announced joint venture to build a new arena project, which will be the centerpiece of a complete revitalization of the area between New York-New York and Monte Carlo resorts, extending from Las Vegas Blvd. to Frank Sinatra Drive.
They have selected Populous, designers of many of the world's most memorable sports, concert and entertainment venues as the Architect of Record and designer for the new approximately 20,000-seat indoor arena.
The arena is expected to break ground in summer 2014, with the grand opening projected for spring 2016. The project is anticipated to cost approximately $350 million and be financed with equity contributions from each of the partners as well as privately funded third-party financing.
"Finalizing our agreement with AEG and selecting Populous, a world-class design firm, as the architect of this project are both important milestones in this process," said Jim Murren, MGM Resorts International Chairman and Chief Executive Officer. "The combination of MGM and AEG, along with the excellent Las Vegas Strip location, is already driving interest from potential investors in this exciting new development."
Populous is underway creating designs for the state-of-the-art arena set to become Las Vegas' premier destination for sporting events, major headline entertainment and special events that will drive significant visitation and revenue to Las Vegas. The venue will feature a variety of unique premium seating offerings as well as other hospitality areas for entertaining and private events.
Dan Beckerman, President & Chief Executive Officer, AEG, said, "After spending many years exploring a variety of arena opportunities in Las Vegas, we are excited to have consummated a partnership with MGM Resorts International, the leading gaming and hospitality company, to begin designing and building a state-of-the-art arena on such an ideally located site. Bringing together the knowledge, experience and assets of our respective organizations, we will create an arena that offers fans the best live entertainment experience."
AEG Global Partnerships, an affiliate of AEG that collaborates with more than 100 venues and other AEG assets worldwide to create sales and marketing platforms, will undertake the sales of sponsorships, premium seating and luxury suite sales as well as seeking a naming rights partner for the new Las Vegas showplace.
Chris Carver, Senior Principal at Populous, said, "The new MGM-AEG arena in Las Vegas will provide the nation's preeminent entertainment destination with a world-class venue that will redefine amenities and premium offerings tailored to the demanding Las Vegas market. We very much look forward to working with MGM and AEG to fulfill their progressive aspirations and quality standards for the entire development."
World leaders in the design and development of iconic arena projects, Populous' portfolio of sports facilities includes more than 20 projects in association with AEG or ICON Venue Group (serving as project managers for the project) including London's O2 arena, Berlin's O2 World arena and Kansas City's Sprint Center.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world's leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company also owns 51% of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, and 50% of CityCenter in Las Vegas, which features ARIA Resort & Casino. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.
Source: http://www.mgmmirage.com/