Wednesday 18 April 2012

Betting on Vegas Comeback - WSJ.com

In the heat of the real-estate boom, MGM Resorts International MGM +0.66% and Dubai World made an ill-fated bet that the Las Vegas real-estate and gambling market would stay strong for years to come, launching an $8.5 billion casino resort called City Center soon before the market turned.

Now, after years of struggles, they are betting that the Las Vegas condo market is approaching a bottom.

In an effort to jump-start sales, the owners of City Center are lowering prices of 602 unsold condominium units in two properties. The reduction, set to be announced Wednesday, includes a 10% drop in face price and incentives like monthly condo association fees and a premium concierge service. All combined, it amounts to a 25% discount off the current prices, the company says.

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