MGM MIRAGE and Mubadala Development Company Announce Plans to Develop Multi-Billion Dollar MGM Grand Abu Dhabi
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MGM MIRAGE and Mubadala Development Company Announce Plans to Develop Multi-Billion Dollar MGM Grand Abu Dhabi
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Category: Middle East
This is a press release selected by our editorial committee and published online for free on 2007-11-08
Iconic mixed-use development to be first project of strategic partnership
MGM MIRAGE (NYSE: MGM) and
Mubadala Development Company, a strategic investment and development firm
wholly-owned by the government of Abu Dhabi, today announced plans to
develop the MGM Grand Abu Dhabi, a mixed-use development that will serve as
an iconic gateway to Abu Dhabi.
The MGM Grand Abu Dhabi will be strategically located at a prominent
downtown waterfront site on Abu Dhabi Island. Once completed, the MGM Grand
Abu Dhabi will feature unparalleled views of the city skyline as well as
stunning panoramic views of the waterfront.
This initial phase will utilize 50 acres and consist of an MGM Grand
hotel and two additional MGM branded luxury hotels each appealing to a
distinct market segment. In total, more than 1,200 luxury guest
accommodations will be developed in the first phase. The development will
also feature a major entertainment facility, as well as high-end retail
shops and world-class dining and convention facilities. The development
will also integrate a variety of luxury residential offerings including
waterfront residences with private yacht berths.
Mr Khaldoon Khalifa Al Mubarak, Chief Executive Officer and Managing
Director of Mubadala, said, "This agreement is another exciting project in
Mubadala's property development portfolio of innovative and commercially
viable projects that contribute to the steady growth of Abu Dhabi's
society. MGM MIRAGE's experience and luxury brands compliment Abu Dhabi's
offering of the finest hospitality and entertainment experiences for both
residents and tourists."
The cost of the project is expected to be approximately US $3 billion,
will be wholly owned by Mubadala and is anticipated to open in 2012.
The MGM Grand Abu Dhabi will be the initial project of the newly formed
strategic relationship between MGM MIRAGE and Mubadala. MGM MIRAGE
Hospitality, a wholly owned subsidiary of MGM MIRAGE will serve as
developer of the project and will brand the hotel properties and manage the
development once open.
"Today's announcement reflects MGM MIRAGE's strategy to further our
brand reach internationally," said Terry Lanni, Chairman and CEO of MGM
MIRAGE. "This magnificent development will leverage the capital resources
and asset management proficiency of Mubadala with the world-renowned
expertise of MGM MIRAGE in design, development and operation of exciting
destination resorts.
"We are thrilled that our first project with Mubadala will create a
destination and icon for Abu Dhabi. We see tremendous potential for this
development and we are confident that this will be the first of many
successful ventures with our Mubadala partners," said Mr. Lanni
Mubadala and MGM MIRAGE will continue to work together to pursue other
real estate and hospitality opportunities on a project-by-project basis.
These may take the form of development/management agreements, joint
ventures and other forms of cooperation to be determined by the companies.
The project has been designed in line with the comprehensive urban
plan, Plan Abu Dhabi 2030, recently announced to guide the sustainable
development and ongoing evolution of Abu Dhabi as a global city.
Abu Dhabi is witnessing some of the most extensive real estate and
hospitality developments in the world, as part of the overall tourism
strategy for the Emirate. Currently under development are world-class
attractions including the Guggenheim Abu Dhabi and the Louvre Abu Dhabi on
Saadiyat Island, as well as leading hotels and world-class attractions on
Yas Island, the new home of the Formula 1 Grand Prix.
Every aspect of the Emirate's tourism strategy and its implementation
works towards strengthening the reputation of Abu Dhabi as an exclusive,
high- end tourist destination. Delivering the highest quality in travel,
accommodation, tourist attractions and importantly, business facilities, is
central to achieving that vision.
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