MGM Springfield to be sold to MGM trust for $400m
MGM Springfield Resort and Casino is to be transferred to MGM’s real estate trust for the sum of $400m.
US.- MGM Resorts International is to sell its MGM Springfield property to MGM Growth, a real estate trust for $400m.
MGM Resorts will lease the property back from the trust and continue to operate the casino with no expected change to its employees, vendors or customers.
The transaction will require the approval of regulatory bodies, including the Massachusetts Gaming Commission (MGC). It is expected that the sale will be closed by the end of the year.
MGM Resorts’ president and chief executive officer, Bill Hornbuckle, said: “The transaction serves the best interests of the shareholders of both companies and further advances our asset-light commitment.”
See also: Casinos in Massachusetts reach pre-pandemic revenue in March.
MGM Resorts has a 42 per cent stake in MGM Growth. MGM Springfield, which opened in 2018 at a cost of $960m, is showing a recovery in revenue after all the impact of the Covid-19 pandemic.
According to the Massachusetts Gaming Commission, MGM Springfield’s March revenue was $22.1m, higher than in any month since May 2019, just before the opening of Encore Boston Harbor in Everett.
