Kerzner owns the Atlantis properties in the Bahamas and the One& Only-branded luxury hotel chain. Istithmar Hotels FZE, aninvestor in Kerzner, is a wholly owned subsidiary of IstithmarPJSC, the investment company of Dubai World, a Dubai governmententity that recently bought a 50% stake in MGM Mirage's CityCenterdevelopment at the heart of the Las Vegas Strip for $2.7 billionand is acquiring as much as $2.4 billion of MGM Mirage commonstock.

Per the development agreement for the North Strip site, MGMMirage will provide the land for the multibillion-dollar integratedresort and retain a 50% stake while Kerzner and Istithmar providecash equity in exchange for 25% stakes. The land being contributedby MGM Mirage--40 acres, most of which it acquired earlier thisyear--is being valued at $20 million per acre.

Kerzner will lead the planning and conceptualization of thisproject. The new resort will front the corner of Las VegasBoulevard and Sahara Avenue, across Las Vegas Boulevard from theSahara Hotel & Casino, which was recently sold for between $300million and $400 million to a new ownership group that plans torenovate and revitalize the 55-year-old, 1,700-room property.