Bloomberg
The casino was opened in 1993, and is one of the largest hotels in the world with more than 6,800 rooms.
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MGM Resorts International agreed to sell its representative MGM Grand Las Vegas to a joint venture between Blackstone Group Inc., in an agreement valued at around $ 2.5 billion, with which he downloads one of his latest properties in the United States and is about to become a landless casino company.
MGM Resorts will receive $ 2.4 billion in cash and $ 85 million in capital as part of the agreement, and will continue to operate the MGM Grand casino under a long-term lease, according to a statement Tuesday.
Private equity giant Blackstone will have a 49.9% stake in the company and its partner, MGM Growth Properties, will contribute to the complex Mandalay bay in exchange for a 50.1% controlling interest. MGM Growth is a real estate investment trust that is listed separately, created in 2016 to own some of the MGM Resorts properties.
MGM Resorts, the largest casino operator on the Las Vegas Strip, has been pressured by activist investors seeking to increase the company’s share price. In the past four years, the company has sold almost all of its wholly-owned resorts in the United States – including the Bellagio to Blackstone a few months ago – while making the transition to what its chief executive, Jim Murren, calls a “model of light business in assets ”.
By harvesting capital from its real estate business, MGM seeks to reinvest in growing markets such as sports betting and a possible casino complex in Japan. MGM Growth has an option to buy MGM Springfield in Massachusetts. MGM Resorts continues to own the CityCenter project in Las Vegas, in a joint venture with the United Arab Emirates investment firm Dubai World, and has a majority stake in MGM China, the company’s casinos in Macau.
MGM Resorts said Tuesday that it is still evaluating its remaining real estate assets, including MGM Springfield and its participation in CityCenter.
The MGM Grand is the company’s original property, opened in 1993 by its founder, Kirk Kerkorian. It is one of the largest hotels in the world, with more than 6,800 rooms. Originally intended for holiday families, the casino once had an amusement park in the back. Since then, the property has evolved to include a convention center, the Hakkasan and Mansion nightclub, a high-end complex that caters to Asian players.
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They sell the MGM Grand in Las Vegas for US $ 2.5 billion
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