Investment firm Dubai World has ended its partnership with MGM Resorts International in City- Center on the Las Vegas Strip. MGM agreed to buy the remaining half of the estate back in February.
“Aria and Vdara are very successful businesses, and we’re looking forward to owning 100% of these businesses. The partnership has been a long and very successful one, but this will make it a more simplified structure for MGM Resorts to own all of CityCenter,” said Jonathan Halkyard, CFO for MGM Resorts International.
The Nevada Gaming Commission unanimously approved the $2.1bn transaction in September.
“It was a massive undertaking, to the credit of MGM and their planners. Dubai World wasn’t afraid of major projects and have done a number of them on their own in Dubai and elsewhere. They considered it to be a wonderful opportunity,” said Dubai World’s counsel Jeff Silver. “We felt it was time for us to step aside and allow MGM to complete their plans with respect to how they wish to hold their ownership in properties here in Nevada and elsewhere.”
William Grounds, president and COO of Dubai World’s subsidiary Infinity World, noted the company continues to hold a number of investments in the US in the hotel and port industry. Nevertheless, he said it is unlikely to make new investments in casino companies.
“In terms of gaming in the United States, I think that is fairly unlikely,” Grounds said. “They are still a major shareholder in MGM with 4.3 percent of the stock. I don’t see them making further gaming investments, particularly in brick-and-mortar in the US at this stage. It’s not on their radar. They are looking at more investments in emerging markets like Africa and places like that.”