The property is located at the corner of Las Vegas Boulevard andSahara Avenue. Kerzner will lead the planning and conceptualizationof this project, according to the two parties. Per the tentativeagreement, MGM Mirage would contribute the land, valued at $20million an acre, and Kerzner International and one of its financialpartners would provide an equal amount of cash equity. Nodetermination has been made with regard to branding.

Kerzner International chairman Sol Kerzner says he has studiedthe Las Vegas market "for some time" and, given the site and thetwo companies combined experience developing destination resorts,believes "this is an outstanding opportunity to create one of themost innovative and exciting destination resorts in the world." MGMchairman Terry Lanni says the partnership is a way for the companyto leverage its land and development experience and accelerategrowth while conserving capital for additional opportunities. "Wesee this type of relationship as a major part of our company'sfuture," he says.

MGM inMay paid two different owners $576 million, about $17million per acre, for 33.5 contiguous acres that abut MGM'sexisting assets there as well as Las Vegas Boulevard, giving thecompany a total of 102 acres to master plan. When MGM Mirage putthe properties under contract in April, company CFOJim Murren intimated that the company would take on a partner withwhich it would design an integrated resort, adding that he alreadyhad received "significant interest" from third parties.