MGM Mirage Offers Update on CityCenter Project

Late last week, MGM Mirage offered a quick update on the progress of their mega-construction project CityCenter.

Since it’s initial construction information was released, the project’s square footage has increased by 670,000 square feet, though none of the components making up the project have changed. Due to that increase, they are now estimating the total gross construction costs will come to $7.4 billion, not including land costs and or the nearly $200 million budgeted for the pre-opening expenses. Wow, just think about those numbers when making out next month’s rent check.

Management also updated its estimate of expected earnings from the sale of residential units in this mixed-use complex, from $2.5 billion to $2.7 billion. All totaled, the new estimated net cost (expenses vs. revenue) of CityCenter should come in somewhere around $4.7 billion versus the previous estimate of $4.3 billion.

When completed, CityCenter, which is located on the Strip, between the Bellagio and Monte Carlo resorts, will be a self-contained development encompassing 2,700 residential units, two non-gaming hotels (one of which will be a Mandarin Oriental), a third 60-story resort/casino and a 470,000 sq-ft. retail and entertainment district which is rumored to be the future home of an Elvis-themed Cirque du Soleil show.

Terry Lanni, Chairman and Chief Executive Officer of MGM Mirage, says CityCenter is still on track for its scheduled November 2009 opening.

For more information, visit the official project site at www.citycenter.com.