MGM wants to get rid of another Vegas property
The casino giant has to dump more assets to meet its “MGM 2020” goal
Another location on the Las Vegas Strip might be changing owners. MGM Resorts International is looking into the option to sell the MGM Grand hopefully before the year comes to an end. On Wednesday, they communicated this decision is part of the already ongoing strategy of getting some cash out of their real estate properties.
“These transactions were key steps, but by no means the end of our journey,” said MGM CEO Jim Murren in a conference call with Wall Street analysts Wednesday. “The Bellagio real-estate transaction represents more to us than a smart financial deal. It provides a likely blueprint for the future.” Just earlier in October, another agreement to sell and lease back the Bellagio and a sale of Circus Circus located on the Strip will give the company $4.3 billion in net cash.
MGM still owns MGM Springfield in MA and has a 50% stake in CityCenter located as well in Las Vegas. There’s another related company, MGM Growth Properties LLC, in which they own about 68% of the shares, was created back in 2016 and is dedicated to real state business. Murren said Wednesday the short-term goal is to own less than 50% of MGM Growth Properties and with the hope of owning less and less of them in the future.
Since the Bellagio and Circus Circus deals are already in process, they are expected to be concluded before this year comes to an end. On the other hand, since the MGM Grand was just announced and started during these last two months of the year they will continue the process to be completed by the beginning of the year 2020.