Poker Coverage: Poker Legislation Poker Tournaments U.S. Poker Markets Sports Betting

MGM Resorts Sells Strip Casinos Mandalay Bay And MGM Grand

Blackstone Group And MGM Growth Properties Form Joint Venture To Purchase Properties For Combined $4.6 Billion

Print-icon
 

MGM Resorts announced the sale of two more of its casinos to real estate companies, as the company continues to move forward with its “asset-light” strategy.

The gaming giant announced that it sold its flagship casino, MGM Grand, and Mandalay Bay to a joint venture for a combined $4.6 billion. It continues its business strategy of unloading expensive real estate assets while retaining the businesses run on those properties.

The joint venture is comprised of the New-York based Blackstone Group and MGM Growth Properties LLC. MGP will own 50.1 percent of the newly acquired property, while Blackstone will own the remaining 49.9 percent.

This is the second and third Las Vegas Strip property that Blackstone has purchased in the last four months. Last October, Blackstone bought Bellagio from MGM for $4.25 billion. Blackstone owns the real estate but leases it out to MGM, who still runs the day-to-day operations of one of the most iconic strip casinos.

The current deal will have the same stipulations. The joint venture will own the real estate but will lease it back to MGM for $292 million. Despite the nine-figure rent payments, the company is anticipating that the transactions will free up about $2.4 billion.

When the Bellagio deal was finalized, there were rumors circulating that Blackstone had an interest in acquiring MGM Grand as well. At the time, MGM was content holding onto the property.

Blackstone purchased the Cosmopolitan of Las Vegas in 2014 for $1.73 billion and was allegedly looking for buyers of the casino in April 2019. With its most recent acquisitions, Blackstone now owns four Las Vegas Strip properties.