MGM Resorts Sells Two Of Its Casinos, Including The Legendary Bellagio In Las Vegas
MGM Resorts is preparing to receive some $ 5 billion in cash after the sale of its Circus Circus casino and that of the famous Bellagio Las Vegas casino, according to CalvinAyre. These sales are certainly linked to his future projects in Japan.
Double Sale Including A Las Vegas Legend
MGM Resorts has decided to part with some of its properties. At first, he sold his Circus Circus casino in Las Vegas to an affiliate of casino operator Phil Ruffin, himself, already owning the Treasure Island casino in Vegas. The sale amount is $ 825 million, comprising $ 662.5 million in cash and $ 162.5 million in debt. The sale will take place during this fourth quarter of 2019.
Phil Ruffin had warned the casino world that he was looking for new acquisitions in Las Vegas. Others follow will this purchase, or will it be enough to quench the thirst of the billionaire and longtime friend of Donald Trump?
Secondly, MGM announced a bigger sale with one of the most famous casinos in the world: the Bellagio. Featured in numerous films and a true Las Vegas icon, the Bellagio was announced for $ 4.25 billion. The buyer is Blackstone Real Estate Income Trust (BREIT), which continuously invests in casinos.
According to the deal, MGM will receive the cash and 5% shares of BREIT. With this operation, MGM sells one of its flagships but is on the verge of recovering a total of $ 5 billion from rebalancing its balance.
Sales Related To The Casino Project In Japan?
Are these sales related to future expenses for his Japanese casino? There is no scenario where a casino firm would spend billions in cash to build a new establishment. His project in Japan – which should cost around $ 10 billion, will be financed largely by loans.
But securing $ 5 billion may allow MGM Resorts to pay off some debt and have a more comfortable mattress for future spending. It can also reassure its co-investors and the Japanese government on the structure’s sustainability and stability.