As they say at the tables, it’s always good to quit while you’re ahead.
Such is MGM Resorts’ (MGM) - Get Report thinking in terms of some its prized Las Vegas strip real estate. The company announced on Tuesday that it is selling its MGM Grand hotel and casino as well as its Mandalay Bay hotel and casino complex to a joint venture partly backed by Blackstone Group (BX) - Get Report.
Under terms of the deal, MGM Growth Properties (MGP) - Get Report and Blackstone Real Estate Income Trust (BREIT) will form a new joint venture that will scoop up the Las Vegas real estate assets of the MGM Grand and Mandalay Bay for $4.6 billion.
In addition, BREIT will purchase $150 million in MGP Class A shares. MGP will own 50.1% of the joint venture, and BREIT will own 49.9%.
The sale of MGM Grand and Mandalay Bay hotel and casino properties on the Vegas strip part of MGM Grand's bigger plan to cash out real estate winnings, pay down debt and boost shareholder value.
Together, the MGM Grand and Mandalay Bay comprise 9,743 rooms, approximately three million square feet of meeting space and roughly 300,000 square feet of casino space across 226 acres on the Las Vegas Strip.
The deal is very similar to MGM Resorts' sale of its flagship Bellagio casino in Las Vegas to Blackstone last year. In October, Blackstone said its BREIT would take control of the Bellagio through a $4.25 billion joint venture with MGM Resorts.
MGM last year sold its Circus Circus hotel and casino for $825 million to Phil Ruffin. Ruffin also owns the Treasure Island casino.
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