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Thu 18 Aug 2011 04:37 PM

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Dubai-backed casino operator to demolish defect tower

MGM to halt work on $8.5bn project after experts deemed tower an earthquake risk

Dubai-backed casino operator to demolish defect tower
CityCenter Holdings is a joint venture between MGM Resorts International and Dubai World subsidiary Infinity

MGM Resorts International, the Las Vegas casino operator
part-owned by Dubai World, is to demolish a 27-storey tower that was to anchor its
$8.5bn CityCenter Aria Resorts and Casino after experts said there was a risk
it could collapse in the event of an earthquake.

Officials and engineering experts in Las Vegas had expressed
concerns that the 27-storey hotel and condominium Harmon Tower was not
structurally safe and halted construction work.

MGM this week said it would be too costly and time consuming
to correct the “faulty construction” and submitted an application to have the
unfinished building demolished.

“Based on…expert advice, CityCenter is recommending that the
structure be demolished by implosion,” said Gordon Absher, vice president of
public affairs for MGM Resorts International.

The demolition is likely to take place within the next six

Dubai World holds a 9.5 percent stake in MGM and is a joint
partner in the Los Vegas-based CityCenter casino project.

MGM this month reported better than expected second-quarter
earnings, as revenue rose 17 percent to $1.81bn, beating the $1.61bn analysts forecast
by analysts.

Resort Ebitda at the $8.5bn CityCenter joint venture of
hotels, condominiums, a casino and mall on the Las Vegas Strip was $64m in the
second quarter, on revenue of $275m.

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