LAS VEGAS -- Venetian Resort-Hotel-Casino officials agreed to sell
the 500,000-square-foot Grand Canal Shoppes to General Growth
Properties, a Chicago-based real estate investment trust, for $766
As part of the deal, General Growth agreed to purchase the
multilevel retail space in the Venetian's proposed Phase II resort,
whose working name is the Palazzo, a Venetian spokesman said.
According to the terms of the deal, General Growth will pay a 6%
capitalization rate on the first $38 million of net operating
income and 8% thereafter, which, according to resort officials,
makes the total agreement worth $1.4 billion.
The sale was expected to close on or about May 17.
"[The Grand Canal Shoppes] were never meant to be a core
business," the spokesman said. "And now we have a development
partner for Phase II."
No timeline has been announced for the 53-story project, which,
in addition to the new retail space, will feature more than 3,000
suites, six ballrooms, 315 conference rooms and a Canyon Ranch
SpaClub outlet, according to William Weidner, president and chief
operating officer of Las Vegas Sands, the Venetian's parent
To contact reporter Amy Baratta, send e-mail to [email protected] .