AEG, a leading sports and entertainment presenter, and MGM Resorts International, a global hospitality company, have entered into a definitive joint venture agreement to develop a new arena project on the Las Vegas Strip. Completing the revitalization of the area between New York-New York and Monte Carlo resorts, the arena will be the centerpiece.
“After spending many years exploring a variety of arena opportunities in Las Vegas, we are excited to have consummated a partnership with MGM Resorts International, the leading gaming and hospitality company, to begin designing and building a state-of-the-art arena on such an ideally located site,” said Dan Beckerman, president and CEO, AEG. “Bringing together the knowledge, experience and assets of our respective organizations, we will create an arena that offers fans the best live entertainment experience.”
Populous, known for designing memorable sports, concert and entertainment venues, has been selected as the Architect of Record and designer for the approximately 20,000-seat indoor arena. Its most notable designs include London’s O2 arena, Berlin’s O2 World arena and Kansas City’s Sprint Center.
“Finalizing our agreement with AEG and selecting Populous, a world-class design firm, as the architect of this project are both important milestones in this process,” said Jim Murren, chairman and CEO, MGM Resorts International. “The combination of MGM and AEG, along with the excellent Las Vegas Strip location, is already driving interest from potential investors in this exciting new development.”
Set to become Las Vegas’ premier destination for sporting events, major headline entertainment and special events, the state-of-the-art design is expected to drive significant visitation and revenue to Las Vegas. The venue will feature a variety of unique premium seating offerings as well as other hospitality areas for entertaining and private events.
“The new MGM-AEG arena in Las Vegas will provide the nation’s preeminent entertainment destination with a world-class venue that will redefine amenities and premium offerings tailored to the demanding Las Vegas market,” said Chris Carver, senior principal, Populous. “We very much look forward to working with MGM and AEG to fulfill their progressive aspirations and quality standards for the entire development.”
Expected to break ground in summer 2014, the grand opening of the arena is projected for spring 2016. The project is anticipated to cost approximately $350 million and be financed with equity contributions from each of the partners as well as privately funded third-party financing.