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The MGM Mirage Group of casinos is going to register a cost  for asset depreciation of 955 million dollars in the third quarter linked to its investment in the CityCenter real estate complex, where the price of apartments has decreased by 30%. This real estate complex, a company owned by MGM Mirage and Infinity World Development Corp, must cover from its own side a cost for asset depreciation of 348 million dollars, pointed out MGM Mirage in a press release on Tuesday.

The American number one in this sector will register 50% of this cost with a before tax impact on its operational profit of about 200 million dollars. CityCenter decided in September to greatly reduce by 30% the price of its available apartments in a still unfavourable market, causing MGM Mirage to depreciate the value of its investment in this group.

On the 1st of October, MGM Mirage had already announced the failure of an offer to exchange bonds which involved “a part of 782 million dollars” of bonds due to mature in 2010. The American number one among casinos found itself in a critical financial situation at the beginning of the year needing to face up to both the consequences of the economic crisis on the frequentation of its casinos and to the construction costs of CityCenter, an immense tourist, hotel, commercial and real estate complex which should open in December in the gaming capital of Las Vegas (Nevada, western United States).

Moreover, the millionaire Kirk Kerkorian, main shareholder in MGM Mirage, indicated on Tuesday in a press release from his Tracinda holding that he “was evaluating the possibility of finding new strategic partners, or even other alternatives for his investment in MGM Mirage”.

The release points out however that he will wait before doing this until CityCenter will have “successfully opened on the 16 December”.