(LAS VEGAS, NV) -- Billionaire Phil Ruffin today closed a previously reported deal to buy the 2,885-room Treasure Island Hotel and Casino on the Las Vegas Strip for $775 million.  Real Estate Channel reported the transaction Dec. 16, 2008.

Ruffin's holding company, Ruffin Acquisition LLC, is the buyer of record. Publicity-shy Ruffin, reported by Forbes to have a 2008 net worth of $2.1 billion, paid MGM Mirage $600 million in cash at closing for the property.

Ruffin also gave MGM Mirage a $175 million secured note bearing interest at 10% payable not later than 36 months after closing.

Ruffin Acquisition, LLC has an option to prepay this note on or before April 30, 2009 and receive a $20 million discount on the purchase price. The note is secured by the assets of TI and will be senior to any other financing, according to James J. Murren, Chairman and CEO of MGM Mirage.

"TI is in great hands with Phil Ruffin and we wish him and all of the property's wonderful employees nothing but the best," says Murren.

Treasure Island Hotel and Casino is located on the Las Vegas Strip and features about 87,000 square feet of gaming space, several fine and casual dining outlets, The Sirens of TI, the iconic pirate battle attraction, and Mystere, the first permanent production in Las Vegas by Cirque du Soleil.

Ruffin, who seldom comments publicly on any issue, says he is "very excited to have acquired such a stellar resort in Treasure Island. The property is in pristine condition, ideally located in the heart of the Strip."

As a result of the sale, MGM Mirage expects to report a substantial gain in the first quarter, Murren says.

MGM Mirage (NYSE: MGM), a global investment player with large holdings in gaming, hospitality and entertainment, owns and operates 16 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau.

CityCenter, described by Murren as a planned unique urban metropolis on the Las Vegas Strip scheduled to open in late 2009, is a joint venture between MGM Mirage and Infinity World Development Corp, a subsidiary of Dubai World.

Infinity today filed a lawsuit in Delaware, alleging MGM breached their joint development contract by notifying the Securities and Exchange Commission that MGM was in dire financial straits and might not be able to complete its part of the estimated $8.8 billion mixed-use project.

According to the suit, Infinity now wants no part of the project and asks the court to legally void its financial obligations in the original deal.

In August 2007, MGM estimated it would take $7.48 billion to complete CityCenter. Since then, MGM  has increased the estimate to $8.8 billion but has raised only $1.8 billion itself, the suit charges.

Murren says MGM Mirage Hospitality has management agreements for future casino and non-casino resorts in the People's Republic of China, Abu Dhabi, U.A.E. and Vietnam.   He could not be reached at press time for comment on the lawsuit.

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