earlierthis week

Per the agreement, MGM and Kerzner each formed their jointventures that then formed a combined 50-50 joint venture. The MGMJV's land contribution to the combined JV, valued at $20 millionper acre or $800 million, is being met by a $600-millioncontribution from the Kerzner JV, of which $200 million will bepaid by the combined JV to the MGM JV such that each member'scontribution to the combined JV is $600 million. The contributionsmust be made in full by spring 2009, according to theagreement.

Led by Kerzner, the combined JV will plan, develop, own andoperate the integrated casino resort property. The parties expectthat the combined JV will obtain project-specific financing fromthird parties to fund the development and construction costs notcovered by the equity in the combined JV. The new resort will frontthe corner of Las Vegas Boulevard and Sahara Avenue, next to MGM'sCircus Circus property and across Las Vegas Boulevard from theSahara Hotel & Casino, which was recently sold for between$300- and $400-million to a new ownership group that plans torenovate and revitalize the 55-year-old, 1,700-room property.