There are bits and pieces along the Vegas strip that still remind people of the recession, however, one big new attraction is still set to open on time despite a slowdown in markets and exchange traded funds (ETFs).
The CityCenter is one of the largest privately financed developments in the United States. The $8.5 billion city within a city is set to open later this year. Allison Gregor for The NewYork Times says this 67-acre development on the Strip consists of six towers with 2,392 apartments, as many as 5,900 hotel rooms, a casino, a shopping center and an entertainment complex.
Some of the finer qualities of the building were tuned by the world’s best architects, and this “city” will have its own fire department and power plant. Major obstacles were hit upon building the CityCenter, as the credit fallout of 2008 stalled financing, technical difficulties were hit upon building, and the MGM Mirage, an arm of Dubai World, had its own serious problems.
Dubai World, which had put $4.3 billion into the CityCenter project since forming the partnership in August 2007, filed a lawsuit against MGM Mirage (MGM) seeking relief from its obligations. As of April 29, the two partners had worked out an agreement whether or not bankruptcy is filed for.
This center is set to be the mecca in Las Vegas and for it to fail now would be miserable at best. Entertainment and gaming shares and ETFs should be able to benefit from the completion as well.
The gaming ETF has seen its assets surge from just $2 million in March to $37.7 today. Could investors be betting on Vegas in an economic recovery?
- Market Vectors Gaming ETF (BJK): up 19% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.