Last week there was an announcement made by Dubai World that it was suing MGM Mirage for breach of contract of it's City Center partnership agreement. Since the announcement MGM Mirage has made a payment of $200 Million dollars, $100 Million of which is Dubai Worlds half, to debt holders for the multi billion dollar development City Center which is under way currently. The suit is still before the courts in Delaware and will be reviewed by the courts soon. MGM Mirage has said publicly that they do not feel they are in breach of their agreement with Dubai World and plans to continue construction on City Center. There are all kinds of speculation about the actions taken by Dubai World, some say that Dubai World just wants a bigger stake in the Development and is taking advantage of the tough times MGM Mirage has been having. One thing that has not been mentioned in the midst of all this confusion surrounding City Center is that Deutsche Bank has approached MGM Mirage about the remaining finances needed to complete City Center and has said that they would provide MGM the necessary capital if they agreed to manage the Cosmopolitan Casino Resort Condominium project that is mere foot steps from the City Center site. I guess only time will tell in these confusing times so stay tuned and check back frequently for the latest updates about the Las Vegas High Rise Condo market.
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