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Old Posted Mar 26, 2008, 9:57 PM
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Steely Dan Steely Dan is offline
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according to the sydney morning herald, this proposal is now officially dead.



source: http://business.smh.com.au/packer-de...0326-21lo.html

Packer dealt a dead hand in Vegas
Michael West
March 26, 2008 - 7:39PM
Page 1 of 2

Just when his Crown Macau casino is coming good, James Packer's US game plan has been dealt a dead hand. The Crown chairman had planned to build one of the world's tallest buildings on an old waterworks site on Las Vegas's famed ''Strip''.

But the site earmarked for the $US5 billion Las Vegas Towers resort project is now up for sale. For a $7.5 billion company, the looming loss of an option for another casino development is small beer, in fact - apart from the discomfort of a dud deal - it may be a blessing in disguise. Packer spent and borrowed big at the top of the market last year, and like many others on a debt-fuelled buying streak, now appears to be reconsidering his pace of expansion.

<snip>

On the Las Vegas deal, James Packer and his US partner in the project, Chris Milam, had already made around $A100 million in payments to Archon Corp which owns the site on the Vegas "Strip.'' Real estate agent, CBRE confirmed today the site was up for sale. Some $US63 million has been reported to be non-refundable and some $US30 million was not going to the purchase price, according to Crikey's Glenn Dyer, who had been following the story.

A spokesman for Crown said there had been a strategic review of the asset which was still underway.

The pending sale, though, may be viewed positively by the market given the credit climate and concerns about subsidiaries' debt levels. Although gaming is a defensive business, the Las Vegas economy has been slugged hard by the housing crisis and faces the prospect of a US recession later this year.

Packer had originally been proposing to build one of the world's tallest buildings - at some 1800 feet - but local concerns over the site's proximity to the airport saw the plans scaled back to a height of 1063 feet.

Milam had taken an option over the site in June 2006. Packer tipped in $US22.5 million for a 37.5% interest in the project.

Crown is also funding the Fontainebleau Hotel Casino in Vegas with US group Turnberry. The Fontainebleau is under construction next door to the site Packer has with Milam.
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Last edited by Steely Dan; Mar 26, 2008 at 10:08 PM.