MGM Resorts agrees Hard Rock Rocksino deal
The company will acquire the operations of the facility in Ohio from MGM Growth Properties.
US.- MGM Resorts has announced that it is set to acquire all operations of the Hard Rock Rocksino Northfield Park, located in Ohio, from MGM Growth Properties (MGP) for US$275 million. The transaction is expected to close in the first half of 2019 and is subject to customary closing conditions and regulatory approvals.
The company revealed this week that it will acquire the operating assets of the Hard Rock Rocksino Northfield Park and lease the real property associated with the Rocksino from a subsidiary of MGP. The Rocksino will be added to the existing master lease between MGM Resorts and MGP and the annual rent payment to MGP will increase by US$60 million. Consistent with the Master Lease terms, 90% of this rent will be fixed and contractually grow at 2% per year until 2022.
Jim Murren, Chairman & CEO of MGM Resorts International, said: “We are pleased to welcome the Hard Rock Rocksino and more than 700 employees to the MGM Resorts family and look forward to working with them during this transition. Since opening its doors in 2013, the Rocksino has cemented itself as the market leader in gaming and entertainment due to its superior asset quality, premium location and dedicated employees. We believe the Rocksino is a great fit for the MGM portfolio and will benefit from our capabilities as a leading global entertainment company and our award-winning M life Rewards Program. We anticipate revenue and profit growth from this combination.”
For the last 12 months, ending June 30, 2018, the Rocksino reported approximately US$293 million in net revenues and US$94 million in Adjusted EBITDAM. The property sits on 110 acres and consists of a 200,000-square-foot gaming facility with more than 2,300 video lottery terminals, and a variety of retail and food and beverage outlets, as well as entertainment venues, including a 1,900-seat music venue and a 250-seat event space. It also includes a year-round horse racetrack and a gas station and car wash.
