Blackstone acquires Bellagio casino
Blackstone has announced it completed the Bellagio acquisition, worth US$4.25 billion.
US.- The casino landscape in Las Vegas may soon change, as Blackstone will take over the Bellagio casino. The company completed the US$4.25 billion acquisition deal it had reached with MGM Resorts International last month.
Despite the take-over, the buyer and the seller will enter into a 95%-5% joint venture. Furthermore, they’ll remain linked after the deal. MGM will lease the property from the joint venture and continue to manage the venue.
Jim Murren, chairman and CEO of MGM Resorts, said of the strategy: “We recently announced two significant transactions. They form part of our broader asset-light strategy. Moreover, the shift in our business model away from a capital-intensive real estate business towards a developer, manager and operator of leading gaming, hospitality and entertainment properties.”
MGM seeks investors
New reports have emerged indicating that MGM Resorts International and MGM Growth Properties are looking for investors for a joint venture that would own two Las Vegas Properties. Bloomberg has revealed that the properties would be prominent ones in Las Vegas.
The report indicates that the companies have solicited interest in the Grand Hotel & Casino and the Mandalay Bay Resort & Casino from investors linked to gaming properties. When inquired about the reports, representatives from both MGM Resorts and MGM Growth Properties don’t immediately respond.
