MGM Resorts Enters Deal With Private Equity Giant Blackstone Over Las Vegas Properties
Skift Take
MGM Resorts has agreed to sell two of its most notable Las Vegas properties, MGM Grand and Mandalay Bay, to a joint venture including real estate giant Blackstone. The company is going asset-light following its sale of the Bellagio last year.
A new joint venture between MGM Growth Properties LLC and private equity giant Blackstone Real Estate Income Trust, Inc. has agreed to buy the MGM Grand and Mandalay Bay casino and resort properties in Las Vegas for $4.6 billion.
MGM Resorts will continue to manage and operate the two properties on a day-to-day basis through a long-term master lease. The joint venture will own the properties and receive rent payments. MGM Resorts will pay an initial annual rent of $292 million.
Right now, MGM Resorts owns the MGM Grand and MGM Growth Properties owns Mandalay Bay.
MGM Resorts has lately been looking to sell its real estate assets under pressure from investors to shift to a business model of developing, managing, and operating gaming, hospitality, and entertainment properties. The comp
