MGM Resorts to sell MGM Grand and Mandalay Bay

MGM Resorts to sell MGM Grand and Mandalay Bay

MGM Resorts has revealed that it will sell the Las Vegas Strip facilities MGM Grand and Mandalay Bay for approximately US$4.6 billion.

US.- MGM Resorts International has announced that it has entered into a definitive agreement to sell the real estate assets of the MGM Grand and Mandalay Bay casinos for approximately US$4.6 billion to a joint venture.

The joint venture is the investment trust fund between MGM Growth Properties and Blackstone Real Estate Income Trust. The joint venture will lease both properties back to MGM Resorts for an initial rent of US$292 million.

Combined with the previously announced Bellagio and Circus Circus Las Vegas transactions, and assuming the redemption of US$1.4 billion in operating partnership units, these transactions are expected to provide total net cash proceeds to MGM Resorts of US$8.2 billion.

“These announcements represent a key milestone in executing the Company’s previously communicated asset-light strategy, one that enables a best-in-class balance sheet and strong free cash flow generation to provide MGM Resorts with meaningful strategic flexibility to create continued value for our shareholders,” said Jim Murren, Chairman and CEO of MGM Resorts

“As such, we remain determined to prudently pursue accretive opportunities related to our remaining owned real estate assets including MGM Springfield, our 50% stake in CityCenter and our 55% economic ownership in MGP (pro forma for the potential US$1.4 billion redemption). 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.”

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