Casino Giant MGM Resorts Sells Land to New York-Based Company | Company

LAS VEGAS (AP) – New York-based real estate investment firm to become Las Vegas Strip’s largest landowner in $ 17.2 billion real estate deal between land subsidiaries of casino giants Caesars Entertainment and MGM Resorts International.

Together, VICI Properties Inc. will end up with properties in 15 states.

The names of MGM Resorts properties will remain the same and players, diners, buyers and viewers should not notice any difference, company spokesman Brian Ahern said Thursday.

“Nothing changes in terms of operations or branding,” he said.

VICI Properties is a real estate investment trust that owns and leases properties to hospitality and entertainment operators. He announced Wednesday with MGM Resorts that he would acquire MGM Growth Properties, a property owner listed on the stock exchange in eight states.

The transaction includes approximately $ 5.7 billion in debt and is expected to close by next summer, subject to regulatory and shareholder approvals. The buyout easily ranks among the biggest real estate deals ever on the Las Vegas Strip.

Bill Hornbuckle, president and CEO of MGM Resorts, said in a statement that the transaction “unlocks the significant real estate value of our assets, improves our financial flexibility and strengthens our ability to execute key growth initiatives.”

VICI owns Harrah’s Las Vegas and Caesars Palace, which are leased to Caesars Entertainment, and undeveloped land nearby east of the Strip.

The seven MGM Resorts properties on the Strip acquired by VICI are The Mirage, New York-New York, MGM Grand Las Vegas, Mandalay Bay, Excalibur, Luxor, Park MGM and the Parkway Park Las Vegas, which includes land under T-Mobile . Arena.

“For the average consumer, he doesn’t care who owns the owner,” Brendan Bussmann of Las Vegas-based Global Market Advisors told the Review-Journal. “MGM will continue to operate these properties as if they were their own. “

MGM Growth owns properties with approximately 33,000 hotel rooms. VICI already owns properties with some 17,800 hotel rooms, including the Harrah’s and Caesars brands.

The merger will give it properties in Illinois, Indiana, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Jersey, New York, Ohio , Pennsylvania and West Virginia.

“Upon completion of the merger, VICI will have an estimated enterprise value of $ 45 billion, which firmly consolidates VICI’s position as the largest experiential net rental REIT while advancing VICI’s strategic objectives. in improving and diversifying the portfolio, ”the company said in a statement.

In March, VICI and investment firm Apollo Global Management announced a $ 6.25 billion deal to purchase properties from Las Vegas Sands Corp. – The Venetian, Palazzo and the Sands Expo and Convention Center – in Las Vegas. VICI will acquire the real estate and Apollo will manage the properties. This agreement is expected to be concluded early next year.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.


Source link

Comments are closed.