London theme promoted for Strip land

Wednesday, Jan. 10, 2001 | 11:39 a.m.

The owners of 77 acres of land on the south end of the Strip near Mandalay Bay said today they are considering a London-themed hotel-casino project at the site.

New World LLC officials have said they hope to develop up to three hotel-casinos at the site, located on the east side of the Strip across from Mandalay Bay.

The London theme would be an obvious attraction to Virgin Group founder Richard Branson, who is in discussions with New World to possibly develop one of the three sites for a hotel-casino. Though acknowledging that those talks are continuing, company officials said this morning that their London concept isn't dependent on a deal being struck with the British billionaire.

Branson has been examining the possibility of developing a Strip resort since at least last year that would be associated with his Virgin Atlantic Airlines, which offers direct flights between London and Las Vegas.

The New World partners also disclosed that Tom Gonzales, founder of Silicon Valley Internet company Commerce One, has become the largest single investor in the company. However, the size of the stakes held by each of the five partners remained undisclosed.

New World's partners also include Bob Unger and Barry Fieldman, the developers of the Strip's Showcase Mall, as well as local developers Howard Bulloch and David Gaffin.

The partnership hopes to locate partners to develop each of the three sites, which together have one-half mile of frontage on the Strip. The Federal Aviation Administration has approved the construction of buildings up to 425 feet on the site, which borders McCarran International Airport.

But analysts and gaming industry observers have said such an effort could be difficult, as capital for the development of new gaming projects on the Strip and elsewhere has been drying up. Analysts cite a tightening high-yield bond market and waning investor confidence in Las Vegas' visitor growth prospects as reasons that cash for new projects might be difficult to find.

In an apparent effort to address these concerns, New World noted in a press release today that "Las Vegas continues to bustle with people both moving into the valley and visiting the town," despite a "standstill" in new developments on the Strip.