LAS VEGAS - MGM Mirage is selling $66 million worth of assets including property in Atlantic City, N.J., an unfinished golf course and some fine art, company officials announced Wednesday.
Proceeds from the sales will be used to further reduce the company's debt incurred in May when MGM acquired Mirage Resorts Inc. for $4.4 billion. The buyout also included MGM assuming $2 billion in Mirage debt.
''We are continuing our program of disposing assets we do not need for our core business and development activities,'' MGM Mirage Chairman Terry Lanni said.
MGM Mirage plans to sell 5.5 acres of undeveloped land on Atlantic City's Boardwalk, known as the ''Dunes'' site, as well as the Cascata Golf Course in Boulder City, Nev., to Park Place Entertainment Corp., Lanni said.
The sale of the golf course is pending the approval of the Boulder City Council.
The company also intends to sell four of its remaining paintings from the Bellagio Gallery of Fine Art - a Renoir, a Morissot and two Modigliani's - at the upcoming impressionist auction to be held by Sotheby's in New York on Nov. 9.
''We are focusing our ongoing art exhibition program at Bellagio on special exhibits - we are currently exhibiting a superb collection of impressionist art from Washington, D.C.'s Phillip's Collection,'' Lanni said.
MGM Grand built the Cascata Golf Course to be the answer to Mirage's world-famous Shadow Creek Golf Course in North Las Vegas, Lanni said.
''With the acquisition of Mirage Resorts, we now own Shadow Creek,'' he said.
MGM Mirage also owns two championship golf course adjacent to its Primm, Nev., properties on the Nevada-California state line.
Once the sales are complete, MGM Mirage will have sold about $220 million in non-strategic assets, said James Murren, MGM Mirage president and chief financial officer.
MGM Mirage is an entertainment, hotel and gaming company headquartered in Las Vegas, which owns and/or operates 18 casino properties on three continents.
Park Place officials said the company's purchase of the Boulder City golf course should be complete by year end, the same time the Rees Jones-designed championship golf course is expected to be ready for its first players to tee off.
''This tremendous golf course and clubhouse will round out our guest amenity offerings and be a tremendous asset for us as we consolidate our position as the leader in the premium market,'' said Mark Dodson, executive vice president.
The combined price for the golf course and the Atlantic City property next to the Atlantic City Hilton is about $60 million.
Park Place is the world's largest gaming company and owns, manages or has an interest in 28 gaming properties operating under Bally's, Caesars, Paris, Flamingo Grand and Hilton brand names.
