The designs presented in this volume offer a wide and varied vision of the latest trends in bar and restaurant design, selected from the most cutting-edge, wining-and-dining hotspots in the world. With ...
Stake in Las Vegas development now valued at $2.44 billion
MGM Mirage announced it plans to record a pre-tax, non-cash impairment charge of $955 million related to its investment in the massive CityCenter complex in Las Vegas. In addition, MGM Mirage said it would take a $348 million non-cash impairment charge related to the residential component within CityCenter.
City Center is a 50/50 joint venture involving MGM Mirage and Infinity World Development Corp. MGM said it evaluates such joint ventures for impairment whenever events or changes in circumstances indicate that the carrying value of its investment may have experienced an other-than-temporary decline in value.
“Based on revised operating forecasts developed by CityCenter late in the third quarter, the company determined that the carrying value of its 50 percent investment in the development is greater than its fair value and an impairment action is indicated,” the company said in a written statement. Based in part on consultations with third-party valuation specialists, MGM Mirage estimates the fair value of its stake in the complex to be approximately $2.44 billion.
MGM Mirage also said CityCenter was required to review its residential inventory under development for impairment, mainly due to the recent decision to discount the prices of its residential inventory by 30 percent. That decision and related market conditions led to the conclusion that the carrying value of the residential inventory is not recoverable, the company said.
Did you enjoy this article? Click here to subscribe to the magazine.
