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MGM Receives Chinese Approval for New $2.5 Billion Cotai Strip Casino Resort
By Scott Kauffman | October 26, 2012 8:30 AM ET
MGM Resorts International (NYSE: MGM) recently announced that MGM China Holdings Limited, a 51%-owned subsidiary, has formally accepted a Land Concession Contract in the form of a lease granted by the Macau Government to develop a five-star luxury resort and casino in Cotai.
MGM has paid the Macau Government the sum of approximately $56 million as the initial payment of the contract premium. The Macau Government will arrange for publication of the Land Concession Contract in the Official Gazette of Macau in due course.
With a budget of approximately $2.5 billion, the world-class resort will include approximately 1,600 hotel rooms, 500 gaming tables, and 2,500 slots built on an approximately 17.8 acre site. The resort will feature over 85% gross floor area of non-gaming offerings, including exciting restaurant, retail and entertainment offerings.
"We are extremely appreciative of the Macau government for the grant of the land concession contract and the opportunity to build a spectacular resort," said MGM China Chairman and Executive Director Pansy Ho. "Our Cotai property will demonstrate our continued commitment to contribute to Macau as it develops into an international tourism and entertainment hub as well as a convention and meeting destination."
Construction is expected to begin after the publication of the Land Concession Contract in the Official Gazette of Macau and is anticipated to take up to 36 months.
"This destination resort represents a significant growth opportunity for MGM China," said MGM Resorts chairman/CEO Jim Murren, who also serves as Co‐Chairman of the Board of MGM China. "The project will fully demonstrate our strengths in terms of design and branding, quality of service, and thoughtful diversification of product offerings."
MGM Resorts International (NYSE: MGM) is best known for operating renowned Las Vegas resorts Bellagio, MGM Grand, Mandalay Bay and The Mirage. Overall, MGM owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in three other properties in Nevada and Illinois.
MGM China is one of the leading casino gaming resort developers, owners and operators in the greater China region. The Company is the holding company of MGM Grand Paradise, S.A., which holds one of the six gaming concessions/subconcessions to operate casino games in Macau. MGM Grand Paradise currently owns and operates MGM Macau, the integrated casino and luxury resort located on the Macau Peninsula and is in the process of developing a gaming resort in Cotai.
MGM China is traded on the Main Board of the Stock Exchange of Hong Kong under stock code 2282 and is a subsidiary of MGM Resorts International (NYSE: MGM).