MGM Resorts International (MGM:US) is no longer pursuing a sale of the Crystals mall at its CityCenter resort in Las Vegas, Chief Financial Officer Dan D’Arrigo said.
The casino company plans to increase the mall’s profitability and revisit a sale in a year or two, D’Arrigo said yesterday in an interview in Las Vegas. The shopping center was valued at $935 million at year-end, according to the company.
“Nothing’s ever off the market, but we’re not pursuing a sale at this point,” he said.
CityCenter, a joint venture with the investment firm Dubai World Corp., was built at a cost of almost $9 billion and carries $1.85 billion in public debt, according to D’Arrigo, who said MGM Resorts is considering refinancing the obligations. CityCenter is paying an average interest rate of about 9 percent, compared with 6.5 percent at MGM Resorts, he said.
“This is the most over-equitized development property in the history of gaming,” D’Arrigo said.
MGM Resorts, the largest casino operator on the Las Vegas Strip, said in February it was considering a sale and reported in August that it had received inquiries.
In addition to the mall, the property includes the Aria casino resort and the Mandarin and Vdara hotels. D’Arrigo said MGM Resorts may seek to change debt restrictions that prevent the payment of dividends from the property.
MGM Resorts rose 0.3 percent to $20.20 yesterday in New York trading. Shares of the Las Vegas-based company have gained 74 percent this year.
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