It’s now clear that MGM has decided to unload some of its land-based assets in Las Vegas. The company recently sold Circus to billionaire Phil Ruffin at a cost of $825 million and Bellagio to Blackstone Group at a price of $4.25 billion.
MGM is now seeking to unload Mandalay Bay, and MGM Grand. Bloomberg real estate reporter, told casino.org that MGM had sent a representative to known gaming investors to weigh their interest on the properties.
MGM Resorts and its associates are accessing offers on the six strip casinos which include: Mandalay Bay, Excalibur, New York-New York, Luxor, Park MGM, and Mirage.
Listing Las Vegas
MGM Resorts CEO Jim Murren recently announced that the company is selling Mandalay Bay and MGM Grand. He further affirmed that the sale of Bellagio served as a framework to ensure future deals are made at their maximum value.
Murren added that selling the real estate will allow the company to achieve a strong balance sheet with low core leverage and then invest in high return rate initiatives, which will simultaneously bring significant capital to shareholders.
Shareholders have welcomed the move. In the past months, MGM Resorts shares soared from $27.97 to $31.44. That is equivalent to 12.4 percent shares growth. Similarly, Dow Jones Industrial Average and NASDAQ indexes gained 3.37 percent and 5percent respectively.
Blackstone acquisition of Bellagio won’t be the first venture in Las Vegas. In 2014, the company acquired Cosmopolitan at a cost of $1.73 billion. Blackstone motto wants to buy it, fix it and sell it.
Blackstone’s largest deal ever was in 2007; the company acquired Hilton Hotels Corporation at a cash price of $26 billion.