Fontainebleau, PBL sign deal

LAS VEGAS, Nevada – (PRESS RELEASE) -- Fontainebleau Resorts LLC, a Las Vegas-based resort and casino developer, today announced it had entered into a definitive agreement with Publishing & Broadcasting Limited (PBL), one of Australia's largest gaming and entertainment corporations. Under the agreement, PBL will make a $250 million investment in Fontainebleau Resorts in exchange for a 19.6% interest in the company.

Fontainebleau Resorts is developing Fontainebleau-Las Vegas, a $2.8 billion, 63-story world-class destination resort located on 24.5 acres on the Las Vegas Strip, as well as re-creating the legendary Fontainebleau Miami Beach with a spectacular $500 million makeover. The Las Vegas project is expected open in fall 2009, and the Miami Beach project in full in summer 2008.

Fontainebleau-Las Vegas will feature a 100,000-square-foot casino and 3,889 luxury hotel rooms, suites and condominium-hotel units, as well as signature restaurants, internationally renowned nightclubs, a stunning spa and state-of-the-art meeting and convention facilities, in a contemporary design. The 16-acre oceanfront complex in Miami Beach will include more than 1,500 luxury guest rooms and suites, a 40,000-square-foot spa, 11 restaurants, nightclubs and lounges, expansive poolscape and cabana area and approximately 200,000 square feet of meeting and convention space. These two landmark projects are intended to serve as the growth platform for the international expansion of the Fontainebleau brand.

Fontainebleau Resorts was co-founded in 2005 by its Executive Chairman and majority owner Jeffrey Soffer, principal of the Turnberry group of companies, one of the nation's premier real estate development firms, and CEO Glenn Schaeffer, former President and Chief Financial Officer of Mandalay Resort Group.

"We are extremely pleased to have such a renowned industry leader as James Packer's PBL as our cornerstone investor," Mr. Soffer said. "We are excited about this strategic alliance between our two companies and are confident this partnership will lead to mutually beneficial growth opportunities."

Commenting on the investment, PBL Executive Chairman James Packer said he was excited to be investing in an organization led by Jeffrey Soffer and Glenn Schaeffer, two individuals with impeccable development and operational credentials.

"This transaction provides PBL Gaming with a first-class entrance into the U.S. casino resort market, in particular, the renowned Las Vegas Strip," Mr. Packer said. "Jeff Soffer's Turnberry organization has an enviable record in America of developing some of the most exciting tourism and residential projects, whilst Glenn Schaeffer brings a wealth of casino resort experience and expertise from his successful career at Mandalay Resort Group."

Completion of the transaction is subject to customary conditions precedent and is expected to close in May 2007.

Press Release - 2007-04-18 04:21:05