Boyd Partners with General Growth Properties
To Develop Retail Component for Echelon
MAY 21, 2007. Aligning itself with one of the most diversified and well-resourced operators in the retail industry, Boyd Gaming Corporation (NYSE: BYD) today announced a joint venture agreement with General Growth Properties, Inc. (NYSE: GGP) to develop a 300,000-square-foot retail promenade as part of Echelon, the Company's 87-acre resort masterplan development on the Las Vegas Strip.
"We are delighted to welcome one of the most respected names in retail to Echelon," said Bob Boughner, President and Chief Executive Officer of Boyd Gaming's Echelon Resorts. "With General Growth, we have jointly envisioned a unique retail experience at Echelon with a diversity of upscale boutiques, cafes, restaurants, and shops. General Growth's operating experience, vast resources and extensive tenant relationships will be critical to delivering this important anchor within our resort masterplan."
John Bucksbaum, Chief Executive Officer of General Growth, said, "Of all the world's most-visited places, Las Vegas has some of the highest standards when it comes to customer expectations for wonderful shopping and entertainment. We welcome this newest opportunity to far exceed those expectations."
Under terms of the agreement, Boyd Gaming will contribute the above-ground (air rights) real estate interest necessary to develop the promenade, and General Growth will contribute $100 million, creating the 50/50 joint venture. The joint venture will then develop the retail promenade. The retail project is expected to cost approximately $500 million, including the value contributed by both parties.
General Growth has a portfolio of more than 200 shopping centers in 45 states. Four of their retail centers are in Las Vegas, including Fashion Show and The Grand Canal Shoppes at the Venetian. GGP will soon acquire the Shoppes at the Palazzo, also at the Venetian, opening in early 2008. In 2009, it will open Summerlin Centre, a mixed-use development featuring 1.2 million square feet of retail in the Summerlin master-planned community on the west rim of the Las Vegas Valley.
General Growth is the latest addition to an assemblage of leading international operators and iconic brands that Boyd Gaming has brought together to develop Echelon, including Morgans Hotel Group, who is developing the Delano and Mondrian hotels in a joint venture with Boyd Gaming; Shangri-La Hotels, the leading luxury hotel brand in Asia; and entertainment producer AEG Live.
Spanning 87 acres on the Las Vegas Strip, Echelon will feature 5,000 hotel rooms, 750,000 square feet of convention and meetings space, two live entertainment venues, 30 dining and nightlife venues, and a 140,000-square- foot casino, all within a lushly landscaped resort setting. Echelon is expected to open in the third quarter 2010.
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