MGM Resorts International has sold the MGM Grand and Mandalay Bay casinos on the Las Vegas Strip for $2.5 billion.
The properties have been acquired by a new joint venture formed by MGM Growth Properties and Blackstone Real Estate Income Trust.
The venture will be owned 50.1 per cent by MGM Growth Properties and 49.9 per cent by Blackstone
MGM Resorts expects to receive net cash proceeds of approximately $2.4 billion and approximately $85 million in MGP operating partnership units.
MGM Resorts announced in October that it was selling the real estate of Bellagio to a joint venture with Blackstone for about $4.25 billion.
Last month the company said it closed on the sale of Circus Circus Las Vegas and 37 adjacent acres for $825 million.
“These announcements represent a key milestone in executing the company’s previously communicated asset-light strategy, one that enables a best-in-class balance sheet and strong free cash flow generation to provide MGM Resorts with meaningful strategic flexibility to create continued value for our shareholders,” said Jim Murren, chief executive of MGM Resorts.
“As such, we remain determined to prudently pursue accretive opportunities related to our remaining owned real estate assets including MGM Springfield, our 50 per cent stake in CityCenter and our 55 per cent economic ownership in MGM Growth Properties.
“Our corporate objective remains crystal clear, we will continue to monetise our owned real estate assets, which facilitates our strong focus on returning capital to our shareholders, while also retaining significant flexibility to pursue our visible growth initiatives, including Japan and sports betting.”
Funds from the Bellagio and Circus Circus transactions have been used to deleverage the company.
The latest transaction is expected to close in the first quarter of 2020, subject to certain conditions.