MGM Resorts is selling the real estate of MGM Grand and Mandalay Bay in Las Vegas to an MGM Growth Properties and Blackstone joint venture for $4.6bn.
The real estate of MGM Grand will be bought for $2.5bn and Mandalay Bay for $2.1bn. The purchase is 15.75 times annual rent. MGM will continue to operate both properties, paying annual rent of $292m.
Blackstone will buy $150m in new MGP shares as part of the deal. MGM has had a goal of reducing its ownership stake in MGP.
The transaction is expected to grow adjusted funds from operations per share while net debt-to-EBITDA following the deal is expected to be 5.6 times, MGP CEO James Stewart said.
Source: Fantini’s Gaming Report