MGM Resorts to sell its land for $4.4B


FILE – In this March 16, 2020, file photo, a couple ride the escalator outside The MGM Grand hotel-casino in Las Vegas. (AP Photo/John Locher, File)

LAS VEGAS (KLAS) — MGM Resorts International and its real estate properties division MGM Growth have entered an agreement to sell its land for $4.4 billion.

Under the deal, VICI Properties will own the land, not the company.

MGM Growth owns properties including a dozen resorts in Las Vegas and other parts of the United States.

The deal values MGM Growth at $17.2B, which includes $5.7B of debt, according to an MGM Resorts news release Wednesday. MGM Resorts will own about a 1% stake in VICI’s operating partnership that’s worth around $370 million.

“In 2016 we started on our journey to become asset-light, and this announcement, together with our recently announced Springfield and CityCenter transactions, reflects the culmination of those efforts and a major step forward in simplifying our corporate structure,” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts. “As a result of these actions, we are well-positioned and remain focused on pursuing growth opportunities in our core business, with significant financial flexibility to continue to deploy capital to maximize shareholder value.”

VICI’s portfolio consists of 28 gaming facilities. VICI announced a few months ago that it’s partnering with another company to buy the land under the Venetian, Palazzo and Sands Expo for more than $6 billion.

According to the companies, the deal should be finalized in the first half of 2022.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.