MGM Mirage Eyes Olympia Exhibition Centre

MGM Mirage Eyes Olympia Exhibition Centre

MGM Mirage announced last week they have entered into a joint venture agreement with the Earls Court and Olympia Group that would potentially lead to the development of a new gaming and entertainment complex in the Olympia Exhibition Centre in the heart of London.

Designed to complement Olympia's current exhibition and convention business, the historic agreement envisions plans that will transform more than 300,000 square feet of Olympia into an unparalleled venue comprising restaurants, retail outlets, entertainment bars and a Las Vegas style casino to be among the first of its kind in Europe. The envisioned development is contingent on the Government's anticipated approval of reformed gaming and associated laws.

Announcing the deal, Terry Lanni, Chairman and CEO of MGM Mirage, said: "We are most excited to be bringing our unrivalled knowledge and experience as the world's leading casino resort operator to support the creation of this new and ambitious entertainment complex in the heart of London. Our aim is to produce a dynamic environment that will bring fun and entertainment to the capital, and which will contribute significantly to new jobs, investment and tourism."

Andrew Morris, CEO of Earls Court and Olympia Group, said his company is delighted to be working with MGM Mirage on this development. "While this project depends on government deregulation and on the consent of our planning authority, we intend to seize this chance to create new jobs for local people while building on Olympia's economic contribution to London. Hosting a gaming and entertainment complex alongside an exhibition centre has proven a successful combination in other countries and we want to be at the vanguard of its introduction into the UK," Mr Morris said.

The terms of the deal will establish a joint venture operation between the two companies, to create the gaming and leisure complex in Olympia Two, with MGM Mirage taking a controlling stake of 82.5% in the project and Earls Court and Olympia taking a 17.5% stake. The project anticipates an initial investment in excess of 150 million British pounds sterling (approximately US$250 million).

The plans will require certain contingency provisions to be met, including the need for deregulation of the UK's current gaming laws in a timely manner, a reduction in the current levels of gaming duty and the requisite planning permissions.

Managing Director of MGM Mirage Development, Europe, Lloyd C. Nathan said they plan to use their global experience to create a unique destination which will appeal to a wide audience. "We will work alongside the local community and others to create a dynamic and appealing environment, which we believe will ensure that Olympia is one of the most popular leisure and business destinations in the UK and the rest of Europe."