Steve Wynn’s new mega casino property development in the less fashionable north end of the Las Vegas Boulevard has given that part of the Strip a welcome face lift, and driven real estate value up to dizzying heights. Now the New Frontier is planning a new major expansion, while the Riviera’s acreage on the Strip has driven the stock upwards, and is the subject of takeover rumours.

While MGM Mirage reportedly values the acreage of their Bellagio property at US$25 million, The Riviera’s premier 26 acres are priced at around US15-20 million. It is the value of its real estate that has sent the company’s stock to over seven times its previous value in nearly twelve months, settling at $39.10 at the NYSE last Tuesday.

Donald Trump made a 33% profit buying and selling Riviera stock for a paltry US$900,000 back in April, claiming he didn’t regret not making another US$11 million had he sold at Tuesday’s prices. Although “The Apprentice” reality show host may not need the money, so far his gaming side of business has been off key, with Chapter 11 sanctuary for his beleaguered Trump Resorts Casino Holdings.

There was a silver lining in the deal for Trump nonetheless, as the Riviera deal not only enabled him to get a Nevada gaming license, but more importantly to establish a relationship with Phil Ruffin, New Frontier owner. At last it seems that gaming may be paying real dividends to the real estate developer, as his association with Ruffin may come along with a deal to build a US$300 million condo tower with more than 1,000 units in the forthcoming redevelopment of the New Frontier into a 3,000-room mega resort.

Ruffin, a billionaire who made his money in real estate, bought the ageing 1967 New Frontier 1000-room property seven years ago for $165 million. With 38.5 acres in one of the premier sites on the Strip, the redevelopment is set to commence in 2005. Ruffin said: “We are not going to take a partner. We are going to do something. We did turn down $20 million an acre. Vegas is on fire. Let's face it." And so it seems, because Ruffin claims that they have already sold 913 out of the planned 1,260 planned units on Tower-One. Tower-Two would be the development with Trump.

Cash rich Las Vegas Sands plans to build a sister to The Venetian close to the Wynn Resort, and reports that Houston’s Landry’s Restaurant owners might be considering making a bid for the Riviera helped this casino stock to fuel fresh speculation of another takeover. As the golden front of the splendid Wynn property, set to open on April 28 2005, shimmers under the Nevada sun, the big gaming players are sure that beyond the glimmer there is real gold.

© Copyright 2004 CasinoCompendium



>>> return to archives
>>> return to frontpage