MGM Resorts to be sold for $825 Million

Published on : Thursday, October 17, 2019

MGM Resorts International has finalized a deal with the real estate mogul Phil Ruffin as per which the former will sell its Circus Circus resort in Las Vegas to the latter.

 

 

The authorities confirmed that the deal also includes 37-acre festival grounds along with a 10-acre RV park in addition to hotel and casino, which employs 2,300 people.

 

 

In another deal, MGM is going to form a joint venture with Blackstone Real Estate Income Trust to acquire MGM’s Bellagio real estate and lease it back to an MGM Resorts unit. While MGM Resorts is going to have 5 per cent equity in the joint venture and cash proceeds of roughly $4.2 billion once the deal closes.

 

 

The MGM Resorts is supposed to pay $245 million as annual rent.

 

 

As per resort authorities, the Bellagio deal will be a strong benchmark for MGM. The MGM Resort’s other holdings include MGM Grand and MGM Springfield.

 

 

These deals come after adding Keith Meister on board. Meister happens to be the chief investment officer of Corvex Management, which owns around 3 per cent  of MGM’s shares.

 

 

Keith was earlier into the real estate committee and he was very active in it. Year to date, shares of MGM Resorts have increased by around 15 per cent

 

 

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