The real estate investment trust Vici Properties is set to become the largest landowner on the Las Vegas Strip after acquiring MGM Growth’s retail assets for $17.2bn.
US.- Vici Properties will buy MGM Growt Properties for $17.2bn, making the real estate investment trust the largest landowner on the Las Vegas Strip.
MGM Resorts International, owner of the majority stake in MGM Growth Properties, has been selling real estate assets in the last few years. It will receive $4.4bn in cash in the deal.
Vici continues to focus on the casino industry, but will gain 15 entertainment properties in the deal.
Chief executive Edward Pitoniak said: “We’re acquiring what we believe is the best-in-class experiential real estate portfolio in America. These are magnificent assets.”
So far, Vici’s sole tenant was Caesars, which contributed 100 per cent of the trust’s revenue. It will now represent 41 per cent.
Deutsche Bank analyst Carlo Santerelli said: “The deal has far-reaching implications both within the gaming REIT space and for MGM, who will now be equipped with even more cash on the balance sheet to put towards ROI endeavors.”