The US casino operator offloads the MGM Grand hotel for $2.5 billion and will use the cash to target the Japanese market.
Japan.- MGM Resorts has made clear its intentions to play a key role in the construction of IRs in Japan, taking big steps to secure capital to fund such a project in the country. Earlier this week the US casino operator sold the MGM Grand hotel for $2.5 billion and will use the cash to help fund opportunities in Japan.
The Grand Hotel is not the first property the company has sold. They recently offloaded the Bellagio, Circus Circus and other properties in Las Vegas for a reported $8.2 billion.
“The transactions, as part of our broader asset-light strategy, will uniquely position MGM Resorts as a leader within the global gaming, hospitality and entertainment sector as a significant return of capital story, while also enabling it to achieve a fortress balance sheet,” Jim Murren, Chairman and Chief Executive Officer of MGM Resorts, said.
“Our corporate objective remains crystal clear, we will continue to monetize our owned real estate assets, which facilitates our strong focus on returning capital to our shareholders, while also retaining significant flexibility to pursue our visible growth initiatives, including Japan and sports betting,” he added.
MGM Resorts has been earmarked to develop an integrated resort if Osaka is one of the three communities that the national government permits to build an IR, whith a decision expected in the coming months.
The company is one of the first official partners and will be associated with Japanese financial services group, Orix Corporation.