Dubai World Invests More In MGM Projects In Las Vegas

Dubai World is taking a stake in more casino projects on the Las Vegas Strip with partner MGM Mirage.

The companies say that a subsidiary of Dubai World's investment arm, Istithmar Hotels FZE, will take a 25 percent stake in a joint venture that MGM had announced in June with Kerzner International Holdings.

They had announced they would develop a multibillion-dollar resort on the Strip.

MGM will contribute 40 acres of a 78-acre parcel of land it owns, valued at $20 million per acre, for a 50 percent stake.

Kerzner will own the remaining 25 percent of the venture.

The companies have entered into definitive agreements on the deal.

MGM Mirage shares rose 67 cents, or 0.8 percent, to $83.27.

Kerzner is to lead the planning of the project at the corner of Sahara Avenue and the Las Vegas Strip.

Construction is to begin in the first half of 2009 and the property is expected to open in 2012.

Dubai World said late last month it would invest more than $5 billion in MGM Mirage for a 50 percent stake in its $7.4 billion CityCenter casino megaresort on the Strip and a 9.5 percent stake in the company.

Dubai World is a holding company for the Persian Gulf state of Dubai.

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