LAS VEGAS (FOX5) -
MGM Resorts Chairman Jim Murren discussed the possibility of selling some of its properties at CityCenter.
"We're not in negotiations today to sell it, but you'd have to believe that's something we'd think about down the road," Murren told investors during the company's fourth quarter earnings conference call Wednesday.
The admission now has some wondering about the future of CityCenter - particularly if and when the company will sell some of its non-gaming properties.
"CityCenter is always looking for ways to improve value for its shareholders," Murren said, adding that one way the company can monetize CityCenter is by selling Crystals, a retail center that sits on Las Vegas Boulevard.
"I think the most attractive candidate down the road would be Crystals, which is one of the most successful retails, and certainly one of the most visible and highly sought after retail environments in the United States," Murren said.
CityCenter is a $9 billion complex co-owned by MGM Resorts International and Dubai World. With CityCenter still $1.85 billion in debt, MGM is also looking at the viability of Vdara and Mandarin Oriental, but not necessarily for bad reasons.
The company says it was able to sell 427 condos at the Veer Towers for $119 million.
UNLV Gaming expert David Schwartz calls any potential sale a bold thought.
"It's definitely a reversal of the original plan for CityCenter, which was this great, integrated destination beyond what we've seen before," Schwartz said. "But, it is the kind of thing casino companies often do - they look for strategic pieces of real estate to sell if that's what's going to help the bottom line."
After the call, a MGM representative clarified earlier statements and told FOX5 that Murren feels Crystals is "trophy real estate" that has had great return on its investment.
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