Las Vegas Weekly

August 25, 2008 · 10:23 AM

Dubai World to boost MGM stake; Sheldon Adelson secures loan for Macau projects

By Robin Leach

Wall Street gaming bankers are abuzz this morning with news that the New Jersey Casino Control Commission will give Dubai World permission to boost its stake in MGM Mirage to up to 20 percent from its current 9.4 percent ownership. However, Dubai World will still require permission from Michigan’s regulators before it can increase its ownership of the Vegas-based gaming company. Dubai World is now the main investor financier behind the current CityCenter construction project at center-Strip between the Bellagio and Monte Carlo resort properties that it owns. In April, the Michigan Gaming Control Board only gave permission for an increase to a maximum 14.75 percent.

Sources in New York financial circles are also reporting this morning that Sheldon Adelson's Vegas headquartered Las Vegas Sands Corp. -- owner of both the Venetian and Palazzo Strip properties -- has successfully negotiated a massive five-year, $5.24 billion loan from a consortium of Hong Kong banks. Although unconfirmed, the funding apparently is to refinance its current $3.3 billion Macau credit facility and to complete the construction of sites 5 and 6 on the Cotai Strip in Macau, and continue to move forward with development and design work on sites 3, 7 and 8. Adelson is the majority landowner on the Cotai segment of the Far East gaming mecca and has always stated his intention to recreate our Las Vegas Strip with a large number of resort properties and attractions.

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