Las Vegas Arena Company, owned by AEG and MGM Resorts International (NYSE: MGM), broke ground on a privately funded, $375 million indoor arena set to open in spring 2016.

Located west of the Las Vegas Strip, between New York-New York and Monte Carlo resorts, the new 20,000-seat arena will host boxing, UFC and other sporting events, major headline entertainment, awards shows and special events.

On-hand to welcome guests to the special ceremony, which signaled the start of construction of the venue being built on a 16-acre site, were Dan Beckerman, president & CEO of AEG and Jim Murren, chairman and CEO of MGM Resorts International.

”We are committed to ensuring that Las Vegas retains its title as Entertainment Capital of the World for generations to come,” said Murren.

Expected to host more than 100 events annually, the arena designed by architect Populous, will house multiple locker facilities, premium dressing rooms, complete broadcast facilities and a variety of staging innovations that will bring the biggest stars and most important events to Las Vegas’ newest landmark.

Designed to meet the U.S. Green Building Council’s standards for LEED Gold Certification, the arena will feature 50 luxury suites, more than two dozen private loge boxes and other specially designed exclusive hospitality offerings.

AEG Global Partnerships, an affiliate of AEG that collaborates with more than 100 venues and other AEG assets worldwide to create sales and marketing platforms, is overseeing the sale of naming rights, sponsorships, premium seating and luxury suite sales for the new Las Vegas showplace.

MGM Resorts International (NYSE: MGM) is one of the world’s leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage.

AEG is one of the leading sports and entertainment presenters in the world.